Big News! Foreign Media: China Retaliates Against US Shipping Restrictions! Sanction Hanwha and Launch Investigation!

Bloomberg reports that China has announced sanctions against the U.S. branch of South Korean shipping giant Hanwha Ocean Co., and warned that more retaliatory measures may be taken against the shipping industry.

This is a new round of confrontational actions between China and the United States as they seek to gain leverage ahead of expected trade negotiations.

According to the sanctions, individuals or institutions within China are prohibited from conducting transactions with Hanwha Ocean's U.S. subsidiary.

This move caused global stock markets to fall on Tuesday, once again dampening investors' hopes for a easing of Sino-U.S. tensions. Hanwha Ocean's stock closed down 6.2%, while Chinese shipbuilding company stocks generally rose.

The Chinese action has intensified long-standing disputes over maritime dominance with the United States.

Previously, both sides had imposed special port fees on ships, and the United States also brought in allies including South Korea to try to revitalize its domestic shipbuilding industry.

Since over 80% of global trade depends on maritime transport, this rivalry has far-reaching implications for the world economy.

Deborah Elms, director of trade policy at the Singapore Henry Foundation, pointed out: "This marks an expansion of the scope of trade conflicts. It is no longer just about tariffs or export controls, but about whether companies can access specific markets. If it continues, it will threaten more economic activities."

Shipping is just one of many issues in the current Sino-U.S. relations. Recently, Beijing has tightened restrictions on rare earth exports, while Washington has expanded restrictions on China's chip supply and threatened to impose an additional 100% tariff starting in November.

Although officials from both countries still emphasize maintaining communication, it remains unclear whether a truce can be reached. China's countermeasures on rare earths and shipping could prompt countries like South Korea to align more closely with the U.S. camp, exerting pressure on Beijing.

U.S. Treasury Secretary Janet Yellen accused China of "pointing a rocket launcher at the entire free world's supply chain and industrial base," and called on allies to unite against Beijing's actions.

According to sources, China's Deputy Minister of Finance, Liao Min, attended the annual meeting of global finance ministers in Washington this week and has met with members of Yellen's team.

Broader trade negotiations are expected to take place in the coming weeks.

Original article: www.toutiao.com/article/1845999217838148/

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