China Sanctions US Firms, Escalating Maritime Trade War
Beijing targets five US subsidiaries of a South Korean shipbuilder in retaliation for a US probe into its shipbuilding industry, fueling market uncertainty.
China has sanctioned five US-based subsidiaries of South Korean shipbuilder Hanwha Ocean, a significant retaliatory move that escalates the ongoing trade friction between Washington and Beijing. The action heightens investor concerns about the stability of global trade and signals potential for broader risk-off sentiment in the US market.
The sanctions, announced by China's Ministry of Commerce, prohibit Chinese entities from engaging in transactions with the targeted firms. This measure is a direct response to a which concluded that Beijing uses 'unfair' practices to dominate the global shipbuilding sector.
According to Beijing, the targeted Hanwha subsidiaries allegedly assisted the US government's investigation, thereby harming China's national interests. The move sent a ripple through the market, with shares of parent company following the announcement.
The US trade probe found that China's share of the global shipbuilding market has surged to over 50%, a dramatic increase fueled by state support and policies that disadvantage foreign competitors. The Office of the United States Trade Representative (USTR) has indicated these practices are 'actionable,' suggesting further measures could be implemented, potentially including tariffs on Chinese-built vessels.
This latest exchange of sanctions marks a new front in the protracted economic rivalry between the world's two largest economies. For investors, it introduces a fresh layer of geopolitical risk, as tensions in the crucial maritime and logistics sectors could have far-reaching implications for global supply chains and corporate costs, as .