China placed sanctions on a handful of U.S.-based subsidiaries of South Korean shipbuilder Hanwha Ocean, over the company's alleged support of an American probe into the Chinese maritime industry.

CNBC reports that China's sanctions went into effect on October 14, banning all Chinese firms from doing business with five of Hanwha's subsidiaries: Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings Corp.

“Hanwha’s subsidiaries in the U.S. have assisted and supported the U.S. government’s probes and measures against Chinese maritime, logistics and shipbuilding sectors," a spokesperson with China's Commerce Ministry said. "China is strongly dissatisfied and resolutely opposes it."

Hanwha acquired the Pennsylvania-based Philly Shipyard in 2024, and announced plans in August 2025 to pour $5 billion into new infrastructure in support of a U.S. initiative to grow the country's shipbuilding capacity. In a statement to CNBC, Hanwha said that it's aware of China's new sanctions, and that it is "currently reviewing the details."

China also announced that it would be looking into the aforementioned probe launched by the U.S. Trade Representative (USTR) in 2024, which asserted that China's dominance in the shipbuilding sector posed a national security threat. The USTR's investigation eventually became the impetus for sweeping fees that took effect on October 14 against Chinese-built and operated vessels calling American ports. China has since retaliated with similar fees against vessels with ties to the U.S., excepting Chinese-built ships.