US pushes back on China’s sanctions against shipbuilding investments

The Trump administration has issued a warning to China, urging Beijing not to penalise foreign companies that assist the United States in developing critical industries. The statement follows China’s recent sanctions targeting the US subsidiaries of South Korea’s Hanwha Ocean Co., which plans to invest in the American maritime sector.

“China’s recent retaliatory actions against private companies worldwide are part of a broader pattern of economic coercion aimed at influencing American politics and controlling global supply chains by discouraging foreign investment in US shipbuilding and other critical sectors,” said US Trade Representative Jamieson Greer on October 20.

Greer’s statement comes amid a long-standing series of disputes between the US and China over maritime dominance. China, which produces over half of the world’s ships, has increasingly sought to assert control over the strategic South China Sea. The conflict carries global economic implications, as commercial shipping accounts for more than 80% of international trade.

Although the US possesses the world’s most powerful navy, its shipbuilding industry remains comparatively limited. To strengthen domestic capabilities, the Trump administration has encouraged investment from South Korea, the world’s second-largest shipbuilder.

China’s sanctions directly target this effort. They bar Chinese individuals and organisations from engaging in transactions with the US units of Hanwha Ocean Co. and warn of potential further measures affecting the industry.

“Attempts at intimidation will not prevent the United States from rebuilding its shipbuilding base and responding appropriately to China’s targeting of critical industrial sectors for dominance,” Greer emphasised.

The dispute extends beyond shipbuilding. Both nations recently imposed special port fees on each other’s commercial vessels. The US is also preparing to implement a 100% tariff on Chinese imports of essential port equipment and has proposed a 150% import tax on other cargo-handling machinery. These measures are part of Trump’s broader effort to reduce Chinese control over strategic global ports, including those near the Panama Canal.

Shipping is just one area of tension in the broader US-China relationship that has unsettled global investors. Beijing has also tightened export controls on rare earth elements and taken other restrictive measures, while the US has expanded curbs on China’s access to semiconductors and threatened additional 100% tariffs.

Earlier Monday, President Donald Trump stated that he expects to address China’s territorial ambitions regarding the self-governing island of Taiwan during his upcoming meeting with Xi Jinping at the Asia-Pacific Economic Cooperation summit in South Korea. Trump did not indicate whether he anticipates China tying trade concessions to issues concerning Taiwan.

By Tamilla Hasanova