Beijing (Brussels Morning Newspaper) – Beijing imposed sanctions on 5 U.S. subsidiaries of South Korean shipbuilder Hanwha Ocean on Tuesday, accusing them of backing a US government probe into the shipping industry, amid ongoing trade tensions between the world’s two largest economies.
The commerce ministry’s action follows China and the US imposing extra port fees on each other’s vessels. Beijing last week announced “special port fees” for US ships arriving at Chinese ports. These fees took effect on Tuesday.
The subsidiaries that are sanctioned include Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings Corp.
How does Beijing justify its sanctions against Hanwha?
The ministry stated that organisations and individuals in China are not allowed to participate in transactions, cooperation, or related activities with Hanwha units.
In April, the United States announced that it would start imposing fees on all ships arriving from China, following a “Section 301” investigation that concluded Beijing’s industry dominance was unreasonable.
Beijing’s commerce ministry stated that the United States‘ investigation and subsequent actions
“severely harm the legitimate rights and interests of Chinese enterprises.”
It said that the Hanwha subsidiaries
“assisted and supported the relevant investigation activities of the US government, endangering China’s sovereignty, security, and development interests.”
Could More American firms face Chinese sanctions soon?
Moreover, on Tuesday, China’s Ministry of Transport launched an investigation into whether the US Section 301 investigation affected the “security and development interests” of China’s shipbuilding industry and supply chain.
The ministry stated that it would evaluate whether companies or individuals had assisted the investigation, suggesting that additional US-linked firms could potentially face further scrutiny or restrictions. China’s commerce ministry described the US measures as “typical unilateralist and protectionist actions” that amount to “unfair competition’ in another statement on Tuesday.
Washington stated that its port fees aim to counter China’s dominance in the global shipping industry and encourage the construction of more ships in the United States.
