China sanctions five Hanwha Ocean U.S.-linked units over probe

China on Tuesday announced sanctions barring Chinese companies and individuals from doing business with five U.S.-linked subsidiaries of South Korean shipbuilder Hanwha Ocean, citing the firms' involvement in a U.S. trade investigation and escalating tensions over global shipbuilding. The commerce ministry named the affected entities as Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC and HS USA Holdings Corp.

The ministry said the units had "assisted and supported the U.S. government's relevant investigative activities, thereby jeopardizing China's sovereignty, security, and developmental interests." The move came the same day the United States and China implemented reciprocal port fees on vessels linked to the other country, part of a wider dispute over maritime and shipbuilding competition.

The U.S. Trade Representative opened a Section 301 investigation in April 2024 into China's growing dominance in shipbuilding, concluding that Beijing's market strength harmed U.S. businesses. Chinese officials said they are also probing that U.S. inquiry and have characterized the U.S. measures as threats to China's...