China has imposed sanctions on five U.S. subsidiaries of South Korean shipbuilder Hanwha Ocean, over their alleged involvement in a U.S. probe into China’s shipping industry.
China Says ‘Strongly Dissatisfied’
The sanctioned entities include Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings Corp, according to a statement from China’s Ministry of Commerce (MOFCOM).
Chinese entities and individuals are barred from engaging in business with these firms, effectively immediately, MOFCOM said.
Seoul-listed shares of Hanwha Ocean declined 5.62% to KRW 1,03,250 ($72.11), following the announcement.
"Hanwha's subsidiaries in the U.S. have assisted and supported the U.S. government's probes and measures against the Chinese maritime, logistics, and shipbuilding sectors. China is strongly dissatisfied and resolutely opposes it," a spokesperson at MOFCOM said in a separate statement, as translated and reported by CNBC.
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Sanctions Come Amid Growing US-China Tensions
China’s move follows the U.S. decision to levy substantial fees on Chinese vessels docking at American ports, effective Tuesday at 12:01 a.m. EDT. In retaliation, China introduced a matching fee of 400 yuan ($56) on U.S. ships beginning the same day.
In recent weeks, Beijing has broadened its blacklist of American firms and unveiled a new framework to curb rare earth exports amid rising trade tensions between the two countries.
Still, Vice President JD Vance expressed optimism that Beijing will opt for a "reasonable" approach, asserting that the U.S. holds a stronger position than China in the ongoing trade tensions.
Last week, President Donald Trump threatened to double tariffs on Chinese imports, sending markets lower. However, on Sunday, the U.S. leader softened his stance, leading to renewed optimism in the market. On Monday, the S&P 500 closed 1.56% higher at 6,654.72, while the NASDAQ 100 climbed 2.21% to close at 22,694.61, as per data from Benzinga Pro.
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