China has moved to impose economic countermeasures on five U.S.-linked subsidiaries of Hanwha Ocean Co., Ltd., escalating tensions in the maritime and shipbuilding sectors amid ongoing trade frictions with Washington.
The Ministry of Commerce (MOFCOM) announced the decision on October 14, 2025, under Decree No. 6 of 2025, approved by the State Anti-Foreign Sanctions Coordination Mechanism. The order took immediate effect, restricting Chinese entities and individuals from engaging in any form of transaction, investment, or cooperation with the listed firms.
The affected entities include:
- Hanwha Shipping LLC
- Hanwha Philly Shipyard Inc.
- Hanwha Ocean USA International LLC
- Hanwha Shipping Holdings LLC
- HS USA Holdings Corp.
According to the ministry, the action was taken under the Anti-Foreign Sanctions Law, a legal framework introduced in 2021 to allow Beijing to respond to foreign sanctions targeting Chinese enterprises and strategic sectors. MOFCOM accused the United States of “violating international law and disrupting the principles of fair trade and competition” through its Section 301 investigation into China’s maritime, logistics, and shipbuilding industries.
A spokesperson from MOFCOM criticized the U.S. for “politically motivated measures” and called for adherence to “market economy principles and multilateral trade rules.”
The ministry emphasized that China “firmly opposes” Washington’s actions and would take further steps if necessary to safeguard the interests of its domestic industries.
The sanctions against Hanwha Ocean’s U.S.-based subsidiaries mark one of Beijing’s most direct responses to the expanding scope of U.S. trade and industrial security measures, which have increasingly included partners and suppliers linked to major Korean industrial groups.
Hanwha Ocean, formerly known as Daewoo Shipbuilding & Marine Engineering (DSME), has strengthened its U.S. presence through logistics, repair, and shipyard operations. The immediate implications of these Chinese restrictions remain unclear, but analysts suggest potential disruption to Hanwha’s cross-border supply chain activities and cooperation with Chinese yards and vendors.
The move underscores China’s strategic use of legal and administrative instruments to counter what it views as Western “economic coercion,” adding another layer of complexity to the global shipbuilding supply ecosystem already under pressure from regulatory and geopolitical headwinds.
