Hanwha Ocean U.S. subsidiaries hit by Chinese sanctions

South Korean President Lee Jae Myung, Pennsylvania Gov. Josh Shapiro, Hanwha Group Vice Photo: Hanwha Group

Five U.S. subsidiaries of Korea’s Hanwha Ocean, including Hanwha Philly Shipyard, have been sanctioned by China as part of its response to the U.S. port fees on Chinese owned and built ships imposed under the Section 301 targeted action announced by U.S. Trade Representative Ambassador Jamieson Greer back in April.

Those fees started to be charged Tuesday as did tit-for-tat fees imposed by China on U.S. owned (or part-owned) ships, with a Matson vessel reportedly already slapped with a $627,943 fee on docking in Ningbo.

Now Hanwha Ocean’s U.S. units have been dragged in. Chinese state news agency Xinhua released this:

“China’s Ministry of Commerce on Tuesday announced the decision to take countermeasures against five U.S.-linked subsidiaries of Hanwha Ocean, a leading shipbuilding enterprise from the Republic of Korea.

“These countermeasures, which took effect on Tuesday, were adopted to counteract the United States’ Section 301 investigation measures aimed at China’s maritime, logistics and shipbuilding sectors, the ministry said in a statement.

“The five U.S.-linked subsidiaries of Hanwha Ocean subject to these countermeasures are Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC and HS USA Holdings Corp., according to the ministry.

“Organizations and individuals within China are prohibited from engaging in any transactions, cooperation or related activities with these entities, the ministry noted.

“In response to a media query, a ministry spokesperson said that the United States has begun implementing final measures under the Section 301 investigation concerning China’s maritime, logistics and shipbuilding sectors — seriously violating international law and the fundamental norms of international relations, and seriously undermining the legitimate rights and interests of Chinese enterprises.

“Hanwha Ocean’s related subsidiaries in the United States have assisted and supported the U.S. government in conducting both the Section 301 investigation and taking related measures against China’s maritime, logistics and shipbuilding industries, in response to which China expresses strong dissatisfaction and resolute opposition, the spokesperson said.

“The spokesperson added that China has launched the countermeasures to safeguard its sovereignty, security and development interests.

“China urges the United States and related enterprises to respect facts and multilateral trade rules, adhere to the principles of market economy and fair competition, correct their wrongdoings as soon as possible, and cease damaging China’s interests, the spokesperson concluded.”