Chinese sanctions will cost a South Korean shipbuilder but could boost US ties
By targeting Hanwha Ocean’s five US-based affiliates, Beijing may encourage the company to help Washington build capacity, analysts say
The ministry alleged that Hanwha had supported Washington’s investigation into Chinese competitors and the ensuing imposition of new port fees.
Hanwha Shipping, Hanwha Philly Shipyard, Hanwha Ocean USA International, Hanwha Shipping Holdings, and HS USA Holdings Corp are all barred from engaging in transactions, cooperation or any other activities with Chinese entities or individuals.
Seoul has touted Philly Shipyard in Philadelphia, acquired last year by the Hanwha Group in a US$100 million deal, as a symbol of the “Masga” (Make American Shipbuilding Great Again) initiative. South Korean President Lee Jae-myung visited the site in August.
The initiative is a shipbuilding cooperation project between Washington and Seoul that could total US$150 billion to help revitalise the American shipbuilding industry through South Korean investment, according to Seoul.