China has started imposing sanctions on South Korean shipbuilding companies. This is just the beginning.
We know that the United States has begun to charge additional fees on ships made in China, and it would be meaningless for China to charge the same fees on ships made in the United States, because the United States basically does not manufacture any ships. It is generally believed that Japan and South Korea will benefit from this, as some orders will be transferred to them from China.
I just checked the data and found that the U.S. capital ratio of Hyundai Heavy Industries, one of the top three South Korean shipbuilding companies, is approximately 10-20%, the U.S. capital ratio of Samsung Heavy Industries is approximately 25-35%, and the U.S. capital ratio of Hanwha Ocean is approximately 15-20%. Large U.S. asset management companies such as BlackRock, Vanguard Group, and State Street Global Advisors hold shares in these companies. I suppose Japanese companies are similar.
This will be a perfect implementation of China's sanctions against them, forcing them to either pay the fees or remove the U.S. equity. China occupies seven of the top ten ports in the world, and these policies will prevent Japanese and South Korean shipbuilding companies from gaining an additional competitive advantage over Chinese competitors.
Original: www.toutiao.com/article/1845971579483148/
Statement: This article represents the views of the author himself.