China sanctions Hanwha Ocean U.S. units over trade

China on Monday announced sanctions against five U.S. subsidiaries of South Korea’s Hanwha Ocean, marking the first time Beijing has directly targeted a Korean company amid the U.S.-China trade conflict. The move is a response to U.S. port fees on Chinese-operated and China-made ships under Section 301 of the U.S. Trade Act, effective the same day.

The Chinese Ministry of Commerce said the sanctions prohibit the subsidiaries from doing business with or cooperating with Chinese organizations or individuals. It also accused Hanwha Ocean of supporting U.S. investigations in ways that harmed China’s sovereignty, security, and development interests.

The affected companies are Hanwha Shipping, Hanwha Philia Shipyard, Hanwha Ocean USA International, Hanwha Shipping Holdings, and HS USA Holdings. Hanwha Philia Shipyard has symbolized South Korea-U.S. collaboration in shipbuilding and is associated with the “Make American Shipbuilding Great Again” project.

The Chinese ministry said the U.S. Section 301 investigation and follow-up actions seriously violated international law and basic principles of international relations and urged Washington to correct its mistakes and stop harming China’s interests.

Meanwhile, both countries implemented reciprocal trade measures on Monday. The United States began charging $50 per ton for ships owned or operated by Chinese shipping firms and $18 per ton for Chinese-made ships. In response, China imposed a port fee of 400 yuan (about 80,000 won) per ton on U.S. vessels.


Chul-Jung Kim tnf@donga.com