The US Section 301 investigation has first destroyed the hope of revitalizing its shipbuilding industry.

China imposed sanctions on Hanwha Ocean Co., Ltd. in South Korea, which has five subsidiaries in the United States, because this company is not focusing on its core business and actively cooperated with the US Section 301 investigation, providing China's shipbuilding enterprises with industry data and industrial chain layout.

South Korea previously announced an investment of $350 billion in the United States, of which $1.5 billion was specifically allocated for the shipbuilding industry, including building warships for the US Navy. They acted quickly, Hanwha Ocean Co., Ltd. has acquired a shipyard in Philadelphia for $100 million, planning to invest another $5 billion to expand its capacity tenfold, and take on the manufacturing and maintenance of warship sections, as well as the construction of LNG ships. Currently, only China, France, and South Korea can build such vessels.

Hanwha Ocean Co., Ltd. was renamed after the Korea Development Bank and Hanwha Group injected 20 trillion won into Daewoo Shipbuilding & Engineering. The major shareholder of Hanwha Group is Japan's Master Trust Bank and Japan's Trust Bank.

The five subsidiaries of Hanwha Ocean Co., Ltd. in the United States have 30% of their business in China. With the prohibition of transactions between Chinese organizations and individuals and it, the parent company Hanwha Ocean Co., Ltd. may be affected.

Hanwha Ocean Co., Ltd. has extensive business with China, including a $24 billion valve business purchased from China, 35% high-strength steel plates, 70% rare earths, and precision navigation technology licensing with Zhenhua, as well as wind power cooperation and green energy joint ventures.

In summary, South Korea's $1.5 billion investment in the US shipbuilding industry is inseparable from China, especially large lifting equipment, precision instruments made from rare earths, and even low-cost high-strength steel. However, the US Section 301 investigation has ruined this, and also damaged Hanwha Ocean Co., Ltd.'s five subsidiaries in the United States.

Original: www.toutiao.com/article/1845982047185098/

Statement: This article represents the views of the author himself.