/ Agencias /Xinhua
China added five US subsidiaries of the South Korean shipbuilder Hanwha Ocean to its list of sanctioned entities on Tuesday for their alleged involvement in Washington’s investigation into the Chinese shipbuilding industry, which led to the imposition of port tariffs on ships from the Asian giant.
“The US subsidiaries of Hanwha Ocean collaborated with and supported the US Government in conducting said investigation and in taking measures against the Chinese maritime, logistics, and shipbuilding industries. China expresses its deep dissatisfaction and firm opposition to this,” stated the Chinese Ministry of Commerce of the Chinese dictatorship in a statement.
Following the imposition of these sanctions, organizations and individuals within Chinese territory will be prohibited from conducting transactions, cooperation, or other activities with said companies, the source recalled, adding that these measures aim to “safeguard the sovereignty, security, and development interests” of China.
The Ministry of Commerce of the communist country also described the tariffs applied by the US on Chinese ships as a “serious violation of international law and the fundamental principles of international relations, which seriously damages the legitimate rights and interests of Chinese companies.”
“China urges the US side and the firms involved to respect the facts and the rules of multilateral trade, to abide by the principles of the market economy and fair competition, to correct their erroneous practices as soon as possible, and to cease harming the legitimate interests of the Chinese side,” was emphasized in the statement.
Hanwha Ocean shares listed on the Korean Stock Exchange were down 6.12% at 14:26 (05:26 GMT) on Tuesday.
These sanctions were announced on the same day that the aforementioned port tariffs come into effect, as well as the similar fees that China will apply, in response, to US ships entering the ports of the Asian country.
The imposition of mutual port fees marks another step in the trade standoff between the world’s two largest economies and was preceded in recent days by Beijing’s announcement of new restrictions on the export of rare earths, to which Washington has responded with threats to raise tariffs on Chinese products to 100%.
It is worth recalling that Hanwha Ocean announced – in late August – that it would invest about $70 million to expand a shipyard it purchased for $100 million US currency in Philadelphia.
Two subsidiaries of the group, Hanwha Ocean and the defense solutions provider Hanwha Systems, hold 40 and 60 percent stakes in the shipyard, respectively.
Hanwha Ocean aims, as indicated at the time, to increase the shipyard’s annual shipbuilding capacity from eight to ten ships by 2035, from one to 1.5.
It also aims to decuple annual sales, from 400 million dollars to 4,000 million dollars, during the same period.
Hanwha Philly was the first American shipyard acquired by a South Korean shipbuilder and has become a centerpiece of bilateral shipbuilding cooperation between Seoul and Washington, called “Make American Shipbuilding Great Again” (MASGA).
These countermeasures, which entered into force on Tuesday, were adopted to counter the U.S. Section 301 investigation measures targeting China’s maritime, logistics, and shipbuilding sectors, according to a statement from China’s Ministry of Commerce.
The five Hanwha Ocean subsidiaries linked to the United States subject to these countermeasures are Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings Corp., according to the ministry.
