- Sanctions Ban Chinese Firms from Transactions with Affected Hanwha Entities.
- Move Approved Under China’s Anti-Foreign Sanctions Law.
- Response to US Section 301 Probes into the Chinese Maritime Sector.
China has imposed sanctions on five US subsidiaries of Hanwha Ocean Co Ltd, reacting to what it describes as unlawful US investigations into its maritime, logistics, and shipbuilding sectors. The Chinese Ministry of Commerce announced the counter-sanctions on Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings Corp, which will take effect on October 14, as per an order signed by Commerce Minister Wang Wentao, reports S&P Global.
Restrictions Imposed
These sanctions prevent Chinese organisations and individuals from engaging in any transactions or collaborations with the five Hanwha entities. This decision was sanctioned by China’s National Coordination Mechanism for Countering Foreign Sanctions, in line with the Anti-Foreign Sanctions Law.
Background and Strategic Context
These actions are a direct response to US Section 301 trade investigations that target China’s maritime industry, which Beijing argues breaches international law and threatens legitimate Chinese business interests. The sanctions highlight the escalating tensions between the US and China regarding trade practices in key industries, especially shipbuilding, where China has a significant global production advantage.
US Scrutiny and Chinese Response
The Chinese commerce ministry claims that Hanwha’s US subsidiaries played a role in supporting US government investigations, which they argue jeopardise China’s sovereignty, security, and developmental interests.
Potential Impact on Maritime Trade
This announcement arrives at a time when the shipping industry is already facing global supply chain challenges, and it could further complicate maritime trade between major economies. Chinese entities are now legally restricted from interacting with the sanctioned Hanwha units, which could have repercussions for ship construction projects, shipping services, and other related maritime activities.
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Source: S&P Global
