China imposes countermeasures on five US subsidiaries of Hanwha Ocean

The Chinese Ministry of Commerce noted on 14 October that these measures respond to the US Section 301 investigation, targeting China’s maritime, logistics and shipbuilding industries. According to the announcement, the US actions “seriously violate international law and the basic norms of international relations, and cause significant harm to the legitimate rights and interests of Chinese enterprises.”

China has now added the following five US subsidiaries of Hanwha Ocean to its countermeasures list: Hanwha Shipping LLC, Hanwha Philly Shipyard Inc, Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings Corp.

The ministry noted these entities “have assisted and supported the US government’s related investigative activities, endangering China’s sovereignty, security and development interests.”

Under the new measures, organisations and individuals within China are prohibited from engaging in related transactions, co-operation or other activities with these entities.

These developments come as the shipping industry assesses the impact of port fees imposed by both sides, which began on 14 October. Beijing initially announced these actions on 10 October, surprising the industry, but later clarified that China-built tonnage would be exempt from payment.

Hanwha’s role in US shipbuilding

South Korea–US co-operation in the shipbuilding sector has accelerated this year, with Hanwha Ocean at the forefront of newbuilding agreements.

The group’s Houston-based shipowning subsidiary, Hanwha Shipping, has ordered 10 MR tankers and two LNG carriers at Hanwha Philly Shipyard. These developments follow Hanwha’s US$100M acquisition of Philly Shipyard in December 2024.

In addition to the latest orders, Hanwha Group has announced a US$5Bn infrastructure investment plan for Philly Shipyard, as part of South Korea’s commitment to supporting US shipbuilding through a US$150Bn investment fund.