On October 17, 2025, the U.S. Department of State criticized the Chinese government’s sanctions on five American subsidiaries of the South Korean shipbuilding group Hanwha Ocean on Thursday, October 16. The U.S. accused the sanctions of being “irresponsible” and attempting to disrupt the shipbuilding cooperation between South Korea and the United States, while promising unwavering support for South Korea.
A spokesperson for the U.S. Department of State, in response to media inquiries, stated, “China’s actions against Hanwha are irresponsible, attempting to interfere with the operation of a private enterprise and disrupt the cooperation between the U.S. and South Korea in revitalizing American shipbuilding and manufacturing.”
“The Chinese actions only further highlight the importance of strengthening economic cooperation between the United States and allies in the Indo-Pacific region, while also serving as the latest example of China’s long-standing attempts to coerce South Korea. We will firmly stand by the Republic of Korea.”
On October 14, the Chinese Ministry of Commerce declared that five American subsidiary companies of the South Korean shipbuilding giant Hanwha Ocean have been added to the sanction list.
The sanctioned companies include: Hanwha Shipping LLC, Hanwha Philly Shipyard Inc, Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings Corp, among others.
These companies are prohibited from conducting business with entities or individuals in mainland China.
The U.S. response to China’s sanctions comes amid escalating tensions in U.S.-China trade relations.
Hanwha Group is one of the top ten chaebols in South Korea and is also one of the largest shipbuilders globally, having secured contracts for the maintenance and overhaul of U.S. Navy vessels. Additionally, the group plans to build a liquefied natural gas carrier flying the U.S. flag.
In July of this year, Lee Jae-myung introduced the “Make American Shipbuilding Great Again” plan, aiming to revitalize the American industry with South Korean shipbuilding technology, with a total investment of approximately $150 billion. The plan involves building shipyards in the U.S., training workers, and maintaining U.S. Navy vessels, with Hanwha Group being seen as a key player in this initiative.
This industrial cooperation plan led to a trade agreement between the U.S. and South Korea in late July, with Trump agreeing to reduce tariffs on South Korean goods from 25% to 15%.
According to Reuters analysis, the impact of China’s sanctions is limited, as these sanctioned subsidiaries have no direct business ties to China and sanctions are not expected to have an immediate effect in the short term. This appears to be a gesture from Beijing in the context of the escalation of the U.S.-China trade war (both sides recently began imposing port fees).
(This article references reports from Yonhap News Agency)