China-US shipping dispute deepens as Beijing sanctions subsidiaries of South Korean giant
Hanwha Ocean stands accused of aiding Washington in its curbs on Chinese shipping
Beijing has announced sanctions against a US ally over its alleged role in constraining China’s maritime and shipbuilding industries – marking an escalation in tensions in the strategic sector.
The move came as Washington enforced port fees targeting China-built or operated vessels on Tuesday, and follows a commitment Beijing made in a previous regulatory update.
China placed five US-based subsidiaries of the South Korean shipping giant Hanwha Ocean – including Philly Shipyard, which the firm acquired last year – on a countermeasures list, accusing them of cooperating with Washington in its curbs on China’s maritime sector, according to a statement from the Ministry of Commerce on Tuesday.
Following China’s announcement, Hanwha Ocean’s stock price briefly fell by as much as 8 per cent on South Korea’s Kospi, the country’s main stock market index.
“Hanwha’s US-based subsidiaries have assisted and supported the US government in conducting the 301 investigation and imposing measures against China’s maritime, logistics and shipbuilding industries. China expresses strong dissatisfaction and firm opposition,” the spokesperson of China’s commerce ministry said on Tuesday.