Trade Tumult: China Targets U.S.-Linked Hanwha Subsidiaries with Sanctions

China has imposed sanctions on five U.S.-linked subsidiaries of South Korean shipbuilder Hanwha Ocean, intensifying trade tensions with the U.S. The move impacts Hanwha's shares and triggers responses from South Korea and industry stakeholders, amid plans to bolster the U.S. shipbuilding sector.

In a significant escalation of trade tensions between the United States and China, the latter announced imposing sanctions against five subsidiaries of the South Korean shipbuilder Hanwha Ocean, which have ties to the U.S. This action caused a sharp decline in Hanwha's stock prices.

The Chinese commerce ministry stated that these subsidiaries aided U.S. government activities, compromising China's sovereignty and security. Transactions and cooperation with these units are now prohibited, as the conflict between both nations over maritime policies deepens.

In response, South Korea's foreign ministry is assessing the impact of these sanctions and aiming to mitigate their effects through diplomatic discussions. Meanwhile, the U.S. continues to seek industry support from allies like South Korea for a revitalization of its shipbuilding capabilities.

(With inputs from agencies.)