China Strikes Back: Sanctions Hit U.S.-linked Hanwha Subsidiaries

China imposed sanctions on five U.S.-linked subsidiaries of South Korean shipbuilder Hanwha Ocean amid growing trade tensions with the U.S. The move led to a sharp decline in Hanwha's shares. This comes as both countries levy new port fees on each other's vessels, escalating maritime industry conflicts.

In a significant escalation of trade tensions, China has announced sanctions on five subsidiaries of South Korean shipbuilder Hanwha Ocean that are linked to the United States. The announcement led to a sharp decline in Hanwha's shares, falling 5.3% at the open of trading.

The Chinese commerce ministry stated that entities within China's borders are now prohibited from engaging in transactions or cooperation with these Hanwha entities. The move was attributed to these subsidiaries' alleged support of U.S. governmental investigations that China claims undermine its sovereignty and security interests.

This development comes as both nations impose new port fees targeting each other's vessels. This tit-for-tat action reflects the ongoing struggle for dominance in the global shipbuilding industry, highlighting the substantial political and economic implications.

(With inputs from agencies.)