China hits back at US probe, sanctions 5 American subsidiaries of S Korean shipbuilding firm
China has imposed sanctions on five US-linked subsidiaries of South Korea’s Hanwha Ocean Corporation in response to a US investigation into its maritime, logistics, and shipbuilding sectors, reports 24brussels. The sanctions, announced by China’s Ministry of Commerce, took effect on October 14, 2025.
The Chinese government stated that the sanctions were necessitated by US actions which it claims “seriously violate international law and the basic norms governing international relations, and gravely undermine the legitimate rights and interests of Chinese enterprises.” The Chinese Ministry’s statement indicated that the US subsidiaries in question had provided “assistance and support” to investigations by the US government, thus jeopardizing China’s sovereignty and development interests.
This development comes amid heightened rhetoric from US President Donald Trump advocating for enhanced shipbuilding cooperation between the US and South Korea. A report by Yonhap suggested that Hanwha Ocean was expected to benefit significantly from this strengthened alliance. Industry experts in South Korea view Beijing’s sanctions as both a countermeasure targeted at Washington and a warning to South Korea, which remains a key competitor in the shipbuilding industry.
The five subsidiaries sanctioned by China are Hanwha Shipping LLC, Hanwha Philly Shipyard Inc, Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings Corp. Concurrently, China’s Transport Ministry has launched an investigation into how the US Section 301 probe affects its shipping and shipbuilding sector, including related industrial and supply chains, according to the official news agency Xinhua.
In an additional move, China announced that new special port fees would be implemented for US ships docking at Chinese ports. According to state media, these charges are intended to “safeguard the legitimate rights and interests of the Chinese shipping industry and enterprises while ensuring fair competition in international shipping.” The fees will apply to all US-flagged and US-built vessels, as well as those owned or operated by entities with at least 25% US ownership.
The phased implementation of these special port fees will commence at 400 yuan ($56) per net ton for eligible US vessels starting October 14, with annual increases planned over the next three years. This fee was introduced following the US’s own imposition of additional port fees on Chinese ships arriving at American ports.
Additionally, the Chinese Ministry of Transport pointed out that the US actions violate WTO rules and bilateral maritime agreements, leading to significant disruptions in maritime trade. Following these developments, US President Trump threatened to impose an additional 100% tariff on China, with measures set to take effect on November 1. In a statement reflective of rising tensions, China called on the US to “correct its wrongdoings” and approach trade negotiations with sincerity, emphasizing that cooperative dialogue cannot occur amidst threats of new restrictions.
Chinese officials have reiterated that dialogue must be rooted in respect and mutual understanding, urging the US to engage in fair trade discussions rather than wielding punitive measures.
