China's Ministry of Commerce on Tuesday, October 14, announced an immediate ban on organisations and individuals within China from engaging in any transactions, cooperation or related activities with five US entities of Korea’s Hanwha Ocean.
The five US-linked subsidiaries of Hanwha Ocean subject to these countermeasures are Hanwha Shipping, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings and HS USA Holdings Corp, according to the ministry. Hanwha Ocean's shares fell sharply after the announcement.
Hanwha Ocean has been accused of helping a US investigation into China's shipping market.
In a statement, China's Ministry of Commerce said: “These countermeasures, which took effect on October 14, were adopted to counteract the United States' Section 301 investigation measures aimed at China's maritime, logistics and shipbuilding sectors.”
The move is likely to heighten tensions between the US and China after US president Donald Trump threatened on Truth Social on October 9 to place 100% extra tariffs on Chinese imports into the US. US treasury secretary Scott Bessent ramped up tensions on Tuesday, October 14, by hitting out at China's decision to ban rare earth exports from December 1.
Hong Kong's Hang Seng Index fell 1.73% on Tuesday, October 14, after falling 2% on Monday, October 13. The Nikkei also fell 2.6% in Japan on October 14 amid uncertainty over who the next prime minister will be.
Meanwhile, as of October 14, China has started charging $56 per net ton fee on US flagged, built or owned vessels. The move is in retaliation to US charges on Chinese-owned ships.
On the same day the US started charging Chinese-owned or operated vessels pay $50 per net ton, rising annually to $140 by 2028, while vessels built in China (regardless of ownership) will face the greater of $18 per net ton or $120 per container, rising to $33 per ton or $250 per container by 2028.
