China Strikes Back: Sanctions Against Hanwha Ocean in Trade Tensions

China has imposed sanctions on five U.S.-linked subsidiaries of South Korean shipbuilder Hanwha Ocean amid escalating trade tensions, negatively impacting the company’s stock. The move comes as both China and the U.S. enforce additional port fees targeting one another, intensifying economic rivalry between the two nations.

China has declared sanctions against five subsidiaries of South Korean shipbuilder Hanwha Ocean, linked to the United States, amid escalating trade tensions between the two economic giants. The commerce ministry's decision negatively impacted Hanwha Ocean's stock, sending shares plummeting by nearly 6% on the announcement day.

The sanctions prohibit Chinese entities from engaging with the affected Hanwha units, citing their support for U.S. government investigations that threaten China's sovereignty and security. The timing coincides with new port fees imposed by both nations, although China has exempted ships it built.

The South Korean government and Hanwha Ocean are assessing these developments. The sanctions add pressure to an already strained global maritime sector, potentially influencing future U.S. collaborations with Japan and South Korea, aimed at revitalizing the shipbuilding industry, as tensions with China continue to mount.

(With inputs from agencies.)