China Sanctions 5 US-Linked Firms

China has imposed sanctions on five subsidiaries of South Korean shipbuilder Hanwha Ocean with links to the United States, the Ministry of Commerce announced on Tuesday, as tensions escalate in the ongoing trade war between Beijing and Washington.

The ministry said that all organizations and individuals in China are banned from conducting transactions, cooperation, or related activities with the sanctioned entities.

At the same time, China’s Ministry of Transport has launched an investigation into the impact of US tariffs imposed under Section 301 on the Chinese shipping industry.

The probe will also examine whether companies or individuals have assisted Washington in implementing discriminatory or restrictive measures against China’s maritime and logistics sectors.

The Chinese sanctions follow a series of US investigations targeting China’s shipping, logistics, and shipbuilding industries. Shares of Hanwha Ocean dropped 5% after Beijing’s announcement.

According to state broadcaster CCTV, China has begun collecting port fees from vessels owned, operated, or built by US entities, as well as those flying the American flag. Chinese-built ships, however, are exempt, as are empty vessels entering Chinese shipyards for repair.

The new port fees form part of Beijing’s countermeasures against similar tariffs the United States plans to impose on China-linked ships starting the same day.

The fees will apply either at the first port of entry or to the first five voyages annually, with the billing cycle beginning on April 17. Ships that fail to pay will face suspension of import and export procedures.

China also confirmed it had informed the United States of new export controls on rare earth metals announced last week, describing them as measures to safeguard national security. These controls introduce a Chinese equivalent to the US Foreign Direct Product Rule, which Washington has used to block semiconductor exports to China from third countries.

The escalation comes after US President Donald Trump said he would raise tariffs on Chinese imports to 100% starting November 1 and impose new restrictions on critical software exports in response to Beijing’s tightening of its own mineral export limits.