Tue Oct 14 07:07:01 UTC 2025: **Here’s a news article summarizing the provided text, tailored for an Indian audience with the perspective and tone one might find in *The Hindu*:**

**China Sanctions South Korean Shipbuilder Hanwha Amid Escalating Trade Tensions with U.S.**

**Beijing, October 14, 2025:** China has announced sanctions against five U.S.-linked subsidiaries of South Korean shipbuilding giant Hanwha Ocean, escalating trade frictions between the world’s two largest economies and sending ripples through Asian markets. The move, announced by the Chinese Commerce Ministry on Tuesday, coincides with the implementation of reciprocal port fees between China and the United States, targeting each other’s vessels.

The Chinese government stated that Hanwha’s U.S.-related subsidiaries have “assisted and supported the U.S. government’s relevant investigative activities, thereby jeopardising China’s sovereignty, security, and developmental interests.” The specific nature of these activities remains undisclosed. The sanctions prohibit any transactions, cooperation, or related activities within China with the targeted Hanwha entities.

This development follows Hanwha’s recent announcement of a significant $5 billion investment in Philly Shipyard, a U.S. company it acquired last year. This investment is part of a broader South Korean effort, backed by substantial government funding, to revitalize the U.S. shipbuilding industry. The U.S., under President Trump, has sought assistance from allies like Japan and South Korea to counter China’s dominance in shipbuilding, particularly in the construction of warships.

Hanwha’s domestic competitor, HD Hyundai Heavy Industries, is also reportedly exploring the acquisition of U.S. shipyards. Hanwha itself operates a shipyard in Shandong, China, which produces ship components for final assembly in South Korea.

The sanctions immediately impacted the stock market, with Hanwha Ocean shares plummeting 5.3% and HD Hyundai Heavy shares falling 4.4%.

The U.S. has been aggressively pushing to limit China’s control over the global maritime industry through a levy of fees on China-linked ships. China has retaliated with similar fees on U.S.-linked vessels, accusing the U.S. of violating international law and norms.

The situation underscores the growing trade tensions and geopolitical complexities impacting the shipbuilding industry, an industry critical for both economic and strategic reasons. India will be closely watching developments as these tensions potentially reshape global trade routes and supply chains.

**Original context:**

* **Publication:** The Hindu (suggests an Indian readership)
* **Sections:** Implies the article aligns with areas such as “View From India Looking at World Affairs” and potentially “business (general).”

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