China’s Sanctions on Hanwha Ocean Seen as Move to Undermine U.S.-South Korea Ties

China’s recent sanctions on U.S.-linked affiliates of South Korean shipbuilder Hanwha Ocean have drawn sharp criticism from Washington, with the U.S. State Department calling the move a coercive attempt to disrupt cooperation between the two allies.

Announced on Tuesday, the sanctions target five Hanwha-related companies, including Philly Shipyard in the United States. China’s Commerce Ministry cited “security risks” and alleged involvement in U.S. government investigations as justification for the bans, which prohibit Chinese entities from engaging in transactions or collaboration with the affected firms.

In response, a U.S. State Department spokesperson condemned Beijing’s actions, describing them as “an irresponsible attempt to interfere with a private company’s operations and undermine U.S.-ROK cooperation on revitalizing American shipbuilding and manufacturing.” The spokesperson further accused China of continuing “a long pattern of coercing South Korea” to advance its political and economic interests.

The sanctions come amid escalating trade tensions between China and the United States, as both nations recently imposed additional port fees on each other’s vessels. These measures precede a planned meeting between the two countries’ leaders and reflect ongoing friction in their broader trade relationship.

Hanwha Ocean, one of the world’s largest shipbuilders, has been expanding its U.S. operations, securing contracts to repair and overhaul U.S. Navy ships and to construct a U.S.-flagged LNG carrier. South Korea has also pledged up to $150 billion in investments to support America’s efforts to revive its struggling shipbuilding sector. The initiative is part of broader trade negotiations aimed at reducing U.S. tariffs on South Korean exports.

Industry experts warn that Beijing’s actions may further strain regional stability, as the shipbuilding sector becomes a key front in the ongoing U.S.-China geopolitical rivalry.