XINDE MARINE NEWS
Why China Sanctioned Five Hanwha Ocean U.S. Affiliates — and What Comes Next Xinde Marine News Chen Yang 2025-10-15 10:06

On 14 Oct 2025, China's MOFCOM issued Order No. 6 (2025) adding five U.S.-related affiliates of Hanwha Ocean to China’s countermeasure list: Hanwha Shipping LLC; Hanwha Philly Shipyard Inc.; Hanwha Ocean USA International LLC; Hanwha Shipping Holdings LLC; HS USA Holdings Corp. From the same date, organizations and individuals in China are prohibited from transactions or cooperation with these entities, under China’s Anti-Foreign Sanctions Law and its implementation rules.

Why these five? (MOFCOM’s stated rationale + public record)
MOFCOM says the companies assisted and supported the U.S. Section 301 actions targeting China’s maritime, logistics and shipbuilding sectors, harming China’s sovereignty, security and development interests. Public filings reviewed by Xinde Marine show that on 20 Mar 2025, Hanwha Shipping sent a letter to the USTR expressing “strong support” for the 301 measures and for a fee/fiscal mechanism designed to enable its fleet to become “U.S. vessels” and serve U.S. needs (including asserted economic and military utility).

The letter further offered financial data and policy recommendations, cited the USNS Wally Schirra ROH completed by Hanwha Ocean on 12 Mar 2025, and described a controlled channel for technology/skills transfer via Hanwha Philadelphia Shipyard (OJT) for ships built at Okpo. On 26 Mar 2025, Hanwha also appeared at the USTR public hearing and submitted testimony along the same lines.


(All facts above derived from MOFCOM’s announcement and the USTR public docket documents provided.)

China’s Ministry of Transport has now launched a sector-wide fact-finding investigation (shipping, shipbuilding and related supply chains) into impacts from the U.S. 301 actions. Authorities state that if entities are found to be implementing, assisting or supporting discriminatory restrictions against China, they may face additional reciprocal countermeasures. Further measures will be introduced “as appropriate” based on findings.

Firms with exposure to China’s maritime and shipbuilding ecosystems should assess compliance risk, avoid activities that could be construed as enabling 301-related discriminatory actions, and maintain robust documentation and governance as the investigation proceeds.


by Xinde Marine News Chen Yang

The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.

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