The US Deartment of Treasury on Thursday criticized China’s decision to impose sanctions on five US subsidiaries of Hanwha Ocean Co., a South Korean shipbuilder, calling the move an irresponsible attempt to undermine US-South Korea cooperation in the maritime and manufacturing sectors.
In a statement responding to media queries, a spokesperson for the State Department said the sanctions interfere with the operations of a private enterprise and jeopardize joint efforts to revitalize the US shipbuilding industry.
China’s actions reaffirm the importance of deepening economic cooperation with allies and partners in the Indo-Pacific region, the spokesperson added, describing the sanctions as part of Beijing’s long-standing pattern of coercive behavior toward South Korea.
On Tuesday, China added Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC and HS USA Holdings Corp. to its sanctions list.
The sanctions bar all forms of trade, exchange and cooperation between the targeted firms and Chinese entities or individuals.
The move highlights renewed trade tensions between Washington and Beijing as Seoul is in last-ditch efforts to finalize a tariff deal with Washington.
This week, US President Donald Trump threatened to impose an additional 100% tariff on imports from China from November, in immediate response to China’s move to tighten its rules on rare earth exports.
Hanwha Ocean has emerged as a key player to resuscitate the US shipbuilding sector in a Make American Shipbuilding Great Again (MASGA) initiative.
Seoul’s proposed commitment to the MASGA project was central to its broader tariff agreement with Wasington in July.
By Yeonhee Kim
yhkim@hankyung.com
Jennifer Nicholson-Breen edited this article.
