Beijing has barred Chinese companies and individuals from doing business with five U.S.-linked subsidiaries of Hanwha Ocean, saying the units aided a U.S. probe that harms China’s security. The move landed the same day both countries began charging new, retaliatory port fees on each other’s ships.
Hanwha Ocean subsidiaries Sanctioned
China’s Commerce Ministry named five Hanwha entities: Hanwha Shipping LLC; Hanwha Philly Shipyard Inc.; Hanwha Ocean USA International LLC; Hanwha Shipping Holdings LLC; and HS USA Holdings Corp.
Why now
The announcement coincided with day-one implementation of reciprocal port fees:
- U.S. fees (Section 301): On Chinese-operated vessels, $50 per net ton from Oct 14, 2025, rising to $140 by Apr 17, 2028 (max five voyages/year). On Chinese-built vessels (regardless of operator), the higher of $18/NT or $120 per container from Oct 14, 2025, stepping to $33/NT or $250/box by 2028 (also capped at five voyages/year).
- China’s counter-fees: From Oct 14, 2025, China is charging U.S.-linked vessels 400 RMB/NT per voyage, escalating to 1,120 RMB/NT by 2028 (max five voyages/year). State media guidance details exemptions (e.g., China-built ships; empty vessels entering for repair).
Market reaction & stakes
Hanwha Ocean’s Seoul-listed shares fell ~5.8% on the news. Seoul’s foreign ministry said it’s assessing the impact and will consult with Beijing and industry to mitigate damage.
Why Hanwha matters to Washington
Hanwha has become central to the U.S. push to rebuild domestic shipbuilding capacity. It acquired Philly Shipyard for ~$100M in Dec 2024 (renamed Hanwha Philly Shipyard) and in Aug 2025 outlined an additional $5B U.S. investment tied to that footprint.
Exposure inside China
Separate from its U.S. expansion, Hanwha operates a component/module yard in Shandong, which could face indirect frictions if counterparties treat anything tied to Hanwha’s U.S. units as high-risk.
