Recently, China has taken countermeasures against South Korean companies, listing five subsidiaries of Hanwha Ocean that are related to the United States on the list, explicitly prohibiting all organizations and individuals within the country from engaging in any form of transactions or cooperation with these subsidiaries.

This precise strike just took effect, and the South Korean shipbuilding industry immediately faced its first negative consequence. Panic quickly spread through the stock market, with Hanwha Ocean's stock closing down 5.8%, losing nearly 20 billion won in market value in a day, while its industry peer Hyundai Heavy Industries also suffered a 4.1% drop.

Seeing the situation getting out of control, the Lee Jae-myung government immediately became panicked.

The South Korean presidential office urgently issued a statement, saying it was already communicating with China to try to minimize losses for South Korean companies, in other words, hoping China would show mercy.

However, the current result is entirely self-inflicted by South Korea. Long before China's countermeasures, Hanwha Ocean and the South Korean government behind it had gradually stepped into the "minefield" of touching China's bottom line.

The root cause of the issue lies in the U.S. implementing port fee restrictions on China's maritime, logistics, and shipbuilding sectors based on so-called Section 301 investigations, attempting to weaken China's dominant position in the global shipbuilding industry.

Not only did Hanwha Ocean's U.S. subsidiaries actively approach the U.S. government to assist in investigations targeting China's shipbuilding industry, but they also deeply integrated themselves into the U.S. "Make American Shipbuilding Great Again (MASGA)" program.

It is reported that in March this year, Hanwha proactively provided "ammunition" to the U.S., suggesting imposing port fees on Chinese ships, becoming a vanguard in the U.S.'s efforts to suppress China's industries.

The South Korean government's attitude was also not concealed.

In August, Lee Jae-myung personally attended a ship naming ceremony at a Philadelphia shipyard, shouting "South Korea-U.S. shipbuilding win-win," and pledged to set up a South Korea-U.S. shipbuilding cooperation fund worth 150 billion dollars, clearly displaying his stance of "binding with the U.S."

More interestingly, in response to China's sanctions, the South Korean presidential office is still trying to "play tough," on one hand emphasizing the need to assess the impact of the sanctions on the MASGA project.

After all, South Korea has invested heavily in this plan, fearing that previous investments might be wasted and also worried about losing the "alliance face."

On the other hand, it claimed that the affected South Korean companies have limited transactions with China, and the losses are limited.

Finally, it said "it is unclear whether China will further sanction, and we will closely monitor," which actually reflects the South Korean government's lack of confidence.

They fear that China may increase the intensity, yet also worry about mishandling the situation and offending the U.S., so they can only take an "observing" posture, secretly trying to communicate with China to stabilize the situation.

Nevertheless, saying that Hanwha Ocean has limited business in China is probably an attempt to reassure the market.

This time, China's countermeasures seem "moderate," targeting U.S. subsidiaries, but what truly made South Korea panic is the industry dependence that is interconnected and affects everything.

If they lose support from the Chinese supply chain, South Korean shipyards will either stop production due to material shortages or have to buy alternative products at high prices, leading to soaring costs, turning originally profitable orders into loss-making deals.

The Lee Jae-myung government is now urgently communicating with China, essentially trying to "make amends," but why didn't they think about it earlier?

When Hanwha Ocean helped the U.S. provide "ammunition" and invested heavily to bind with the U.S., why didn't they consider angering China, a key partner?

Now, with panic spreading and losses becoming evident, they suddenly seek Beijing's mercy, which is too much for them to expect.

In short, South Korea overestimated its ability to "walk a tightrope," thinking it could avoid angering the U.S. while not losing the Chinese market.

But no country can harm China's core interests without paying a price and still enjoy the benefits of cooperation. Hanwha's experience is the best example.

Not only South Korea, but any country should recognize this: China does not proactively provoke conflicts, but when it comes to core issues like sovereignty and industrial security, it will never compromise in the slightest. Those who harm China's interests must pay a price.

Original article: https://www.toutiao.com/article/7561581217448182313/

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