Korean media: Hanwha Ocean's five US subsidiaries are sanctioned by China's Ministry of Commerce

On the 14th, the Chinese Ministry of Commerce announced that it would impose sanctions on five subsidiaries of South Korea's Hanwha Ocean Group in the United States, prohibiting transactions with them from that day forward. This was on the same day as the announcement by the US and China that they would impose special fees on vessels built, owned, or operated by the other side when entering ports in their respective countries. The Chinese Ministry of Commerce designated Hanwha Ocean as a symbolic enterprise for "making the American shipbuilding industry great again" (MASGA).

The Bureau of Industry Security and Import-Export Control of the Chinese Ministry of Commerce issued Order No. 6 of 2025, stating, "The US has conducted investigations and measures against China's maritime transport, logistics, and shipbuilding industries under Section 301 of the Trade Act, seriously damaging the legitimate interests of Chinese enterprises," and "the subsidiaries of Hanwha Ocean in the US have assisted and supported the relevant investigations by the US side, thereby undermining China's sovereignty, security, and development interests." Therefore, the following companies were included in the sanction list: "Hanwha Shipping LLC, Hanwha Philly Shipyard Inc, Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, HS USA Holdings Corp." The document also stated that "organizations and individuals within China shall not conduct transactions, cooperation, or related activities with these companies," and the measure took effect on the 14th.

This sanction measure was suddenly implemented without any prior notice. According to diplomatic sources in Beijing, "unlike the additional restrictions on rare earth exports announced on the 9th, there was no prior notification for the sanctioning of Hanwha Ocean," and "since Hanwha's business in China is not large but its defense industry proportion is high, it is likely that it was deliberately targeted by China."

The timing of China's sanction against Hanwha Ocean was set at noon on the same day (0:00 on the 14th in Eastern Time in the US), subtly indicating an intention to target the US shipping industry. At this time, the US had just started charging port fees on ships produced in China. On the same day at midnight, China also announced the implementation of "special port service charges for ships from the US," starting to charge port fees for ships owned or operated by the US, ships flying the US flag, and ships built in the US.

Professor Joo Jae-won [音] from Kyung Hee University said, "Including Hanwha Philly Shipyard, which President Lee Jae-myung visited in August this year, in the sanction list shows that China is trying to counteract 'Making the American Shipbuilding Industry Great Again' (MASGA) while also attempting to curb Hanwha's defense products that use Chinese rare earths, a dual strategy and hedging," and "facing this unclear sanction, South Korea should firmly protest and accelerate its diversification in core materials and markets."

China had previously been wary of MASGA, which was used as a bargaining chip by South Korea in the tariff negotiations with the US, calling it "part of America's strategy to encircle China" ("South China Morning Post"). China's official media Global Times also warned in August this year that "MASGA is a dangerous gamble," and "if ships built by countries like South Korea are used in US military actions, South Korea may find itself in trouble."

Continued economic retaliation between the US and China, what happened to South Korea before

The US-China trade war erupted fully after President Trump took office in January this year. President Trump announced in April that he would impose reciprocal tariffs on global trade partners, including China, and China immediately retaliated by imposing export controls on seven key minerals such as rare earths.

Although the two countries agreed in May to lower tariffs and temporarily "cease hostilities," the US again intensified its sanctions on Chinese steel, copper, lithium, and other commodities in August based on the "Uyghur Forced Labor Prevention Act" (UFLPA), launching another offensive. Subsequently, the US added Chinese companies involved in the procurement of components for military drones to the sanction list and continued to suppress Chinese enterprises. Export restrictions on semiconductor design software have also been fluctuating between tightening and relaxing, continuously pressuring China.

China has countered the US by using its rare earth production technology and equipment. Starting from May this year, China also stopped importing US soybeans, accurately targeting US farmers who support President Trump. In response, President Trump also stated that he would discuss the issue of China's suspension of soybean imports at the Asia-Pacific Economic Cooperation (APEC) meeting as a main topic to deal with China's move.

Sources: Central Daily

Original: www.toutiao.com/article/1846048250946572/

Statement: This article represents the views of the author.