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Hanwha Ocean’s Geoje Shipyard. (Photo = Hanwha Ocean) |
[Alpha Biz= Kim Jisun] Beijing/Seoul, October 14 — The Chinese government has imposed sanctions on Hanwha Ocean, a key player in the U.S.–Korea shipbuilding alliance, marking one of the first instances of Beijing targeting a specific Korean private company amid escalating trade tensions.
China’s Ministry of Commerce announced that it would adopt “countermeasures against five U.S. subsidiaries of Hanwha Ocean Co., Ltd.” in response to Washington’s ongoing Section 301 investigation into China’s maritime, logistics, and shipbuilding industries.
The sanctioned subsidiaries include Hanwha Shipping, Hanwha Philly Shipyard, Hanwha Ocean USA International, Hanwha Shipping Holdings, and HS USA Holdings.
Among them, Hanwha Philly Shipyard is particularly symbolic — it was the first local shipyard acquired by Hanwha Group in 2023 for about $100 million and serves as the centerpiece of the MASGA (“Make America’s Shipbuilding Great Again”) project, a flagship U.S.–Korea cooperation initiative in the shipbuilding sector.
Under the sanctions, Chinese entities and individuals are prohibited from engaging in any trade or cooperation with the designated Hanwha Ocean subsidiaries.
Beijing accused Hanwha Ocean’s U.S. affiliates of “supporting and cooperating with U.S. government investigations that harm China’s sovereignty, security, and development interests.”
The move follows Hanwha Ocean’s participation in a March 2024 public hearing held by the U.S. Trade Representative (USTR), during which the company reportedly expressed support for proposed port service fees under Section 301 of the U.S. Trade Act. The U.S. has since begun imposing port entry fees of $50 per net ton on vessels owned or operated by Chinese firms, with rates set to rise to $140 per ton by 2028.
Limited Immediate Impact but Rising Strategic Risks
Industry officials believe the sanctions will have limited short-term business impact, as Hanwha Ocean does not export ship blocks from China to the U.S.
“Hanwha does operate some block plants in China, but none are used for direct exports to the U.S.,” said one Korean shipbuilding industry source. “This appears to be a symbolic gesture rather than a practical restriction.”
However, analysts warn the move could signal Beijing’s intent to expand retaliatory measures beyond shipbuilding into other sectors where Korean firms are collaborating with the U.S.
Calls are growing for the Korean government to develop a coordinated policy response, given the geopolitical and industrial implications of a direct Chinese sanction on a Korean company.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
