China Challenges US Shipbuilding with Ban on South Korean Firm Hanwha Ocean

China has banned trade by Chinese firms with five subsidiaries of South Korean shipbuilder Hanwha Ocean, citing national security threats from a US investigation into China's shipbuilding dominance. The move marks increasing tensions between Beijing and Washington, impacting international maritime relations and trade discussions.

In a significant move, China's Commerce Ministry announced a ban on dealings by Chinese companies with five subsidiaries of South Korean shipbuilder Hanwha Ocean. This decision comes amidst rising tensions between Beijing and Washington over the latter's efforts to revive the US shipbuilding industry.

Beijing's ban follows a US Trade Representative's Section 301 trade investigation launched in April 2024 to scrutinize China's burgeoning influence in global shipbuilding. In response, China has expressed concerns over its national security and shipping sector, pledging further retaliatory measures.

As Hanwha Ocean navigates the fallout, its shares dropped by 8% on the South Korean market. Meanwhile, a potential meeting between US President Donald Trump and Chinese leader Xi Jinping hangs in the balance as trade rifts deepen, further complicating the geopolitical landscape.

(With inputs from agencies.)