Beijing blacklists Hanwha Ocean subsidiaries amid rising US-China maritime tensions
BEIJING has launched investigations into entities that have assisted the US in imposing restrictions on China’s maritime industry and warned that retaliatory measures could follow.
The first targets are five US subsidiaries of South Korean shipbuilder Hanwha Ocean, which have been placed under a blocklist by China’s Ministry of Commerce.
The announcement came on the same day the Chinese government implemented ‘reciprocal’ port fees on US-linked vessels — a move that signals an escalation in its deterrence tactics and a broadening of potential retaliatory targets..
According to a statement from the Ministry of Transport, the probes are aimed at “safeguarding the security and development interests of China’s shipping, shipbuilding, and related industrial and supply chains.”
The ministry cited legal grounds under the National Security Law, the Anti-Foreign Sanctions Law, its implementing regulations, and the Regulations on International Maritime Transport.
The investigations will target companies, organisations, or individuals that “carry out, assist, or support discriminatory measures imposed by the US against China” in these sectors.
The move comes amid escalating friction between Washington and Beijing, both of which have introduced port fees on each other’s shipping industries as part of a wider trade dispute that risks once again disrupting global maritime activity.
Under the USTR’s Section 301 investigations into China’s alleged unfair maritime trade practices, the resulting US port tariffs — though significantly watered down from an earlier draft proposal — still cover ships owned, operated, or built by Chinese companies.
China’s largest shipowner, Cosco, is expected to bear the brunt of the levies, facing an estimated $1.5–$2bn in additional annual costs unless it adopts mitigation measures. Other affected parties include Chinese ship-leasing firms, shipbuilders, and even Hong Kong’s ship flag registry.
In retaliation, Beijing recently announced countermeasures, which are likely to affect many shipowners listed in the US. However, exemptions for Chinese-built ships are expected to soften the blow.
The targeting of the US policy supporters and collaborators follows closely after the introduction of the reciprocal port fees, which some Chinese maritime insiders described as part of a broader “one-two punch” in China’s response.
The first entities to be sanctioned include Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings Corp.
China’s Ministry of Commerce said the firms “assisted and supported US government investigation activities, undermining China’s sovereignty, security, and development interests.”
Domestic organisations and individuals are now prohibited from engaging in transactions or cooperation with these companies.
Lloyd’s List understands that Hanwha Shipping, which serves as Hanwha Ocean’s ship-owning arm in the US, was one of the few industry representatives to voice strong support during the USTR’s public hearing earlier this year in Washington for imposing port fees on Chinese vessels.
As one of South Korea’s largest shipbuilders, Hanwha Ocean has also been a vocal backer of Seoul’s “Make American Shipbuilding Great Again (MASGA)” initiative.
In August, the company pledged a $5bn investment in its Hanwha Philly Shipyard, confirming newbuilding orders for 10 oil tankers and one LNG carrier — all placed by Hanwha Shipping.
Beijing’s sanctions could impact pricing and delivery schedules for these newbuilding projects, as they will no longer have access to China’s cheaper and faster-supplied components and marine equipment.
Moreover, if ships built at the Philadelphia yard are subject to extra port fees when calling at Chinese ports, shipowners are expected to factor those costs into their decisions.
In a written response to Lloyd’s List, a Hanwha Ocean spokesperson said the company was aware of the announcement from the Chinese government and “is closely reviewing its potential business impact.”
For the shipbuilding giant, whose operations are largely based in South Korea, the overall impact is expected to be limited, said a shipbuilding analyst at an Asia-based investment fund.
The analyst cautioned, however, that the company should avoid overcommitting to the US market.
“Given the current geopolitical climate, such deep involvement could easily turn into a political risk,” the analyst said. “And even without sanctions, manufacturing in the US remains extremely expensive.”
Hanwha Ocean’s Seoul-listed shares slumped following the Chinese sanctions announcement, closing down 5.8% today.
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