China May Sanction Hanwha’s U.S. Subsidiaries, Potentially Affecting U.S. Shipping Fees and Rare Earth Exports

• Blacklisted firms: five U.S. Hanwha subsidiaries blocked from business with Chinese entities

• China levied a 400 yuan (~$56) per net ton port fee on U.S.-linked vessels and expanded export controls on rare earths.

• Shares of Hanwha Ocean fell more than 8% in Seoul after the announcement; the move followed reports published by CNBC.

China sanctions Hanwha subsidiaries: Beijing blacklists five U.S. firms, blocks Chinese ties and adds port fees. Read full report and implications on COINOTAG.

What are China’s sanctions on Hanwha’s U.S. subsidiaries?

China sanctions Hanwha subsidiaries by placing five U.S.-based Hanwha entities on a trade blacklist that immediately prohibits Chinese businesses and individuals from engaging with them. The move, described by China’s Ministry of Commerce as a national security measure, accompanied new port fees and export restrictions that target U.S.-linked maritime activity.

Which entities were blacklisted and why?

The firms named are Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings Corp. China’s Ministry of Commerce said the designation was prompted by those subsidiaries’ alleged assistance to U.S. investigations into China’s maritime, logistics, and shipbuilding sectors. A Ministry of Commerce spokesperson said Beijing was “strongly dissatisfied and resolutely opposes” the cooperation, a quote translated and published by CNBC. Hanwha USA provided a brief response through spokesperson Linda Johnson, saying the company is reviewing the announcement and remains committed to its U.S. maritime investments and services.

How do the new port fees and export controls work?

China announced a port fee of 400 yuan per net ton—about $56—applied to vessels linked to the United States. The fee took effect at the same time U.S. charges on Chinese ships began. China excluded China-built vessels from this fee, creating a differentiated treatment based on vessel origin. Container ships commonly range from roughly 50,000 to 220,000 net tons, so the levy can quickly amount to substantial sums for large vessels. Concurrently, Beijing expanded a blacklist of U.S. companies and rolled out a framework tightening rare earth export controls, citing national security considerations.

Frequently Asked Questions

Which Hanwha subsidiaries are affected by China’s blacklist?

Five U.S.-based Hanwha entities were blacklisted: Hanwha Shipping LLC; Hanwha Philly Shipyard Inc.; Hanwha Ocean USA International LLC; Hanwha Shipping Holdings LLC; and HS USA Holdings Corp. The designation prohibits Chinese firms and individuals from doing business with these subsidiaries effective immediately.

Will the new port fees increase shipping costs for U.S. operators?

Yes. The 400 yuan (~$56) per net ton charge applied to U.S.-linked vessels will raise operating costs for affected carriers. On large container ships, the cumulative fee can be significant, and China’s exclusion of China-built vessels creates an uneven competitive impact.

Key Takeaways

• Immediate blacklisting: Five Hanwha U.S. subsidiaries are barred from business with Chinese entities, a measure China ties to alleged cooperation with a U.S. probe.
• Reciprocal economic measures: Beijing imposed a 400 yuan per net ton port fee on U.S.-linked vessels and announced tightened rare earth export controls to protect strategic supply chains.
• Market impact and oversight: Hanwha Ocean shares fell over 8% in Seoul; China’s Ministry of Transport opened an investigation into the effects of the U.S. Section 301 probe on China’s shipping and shipbuilding sectors.

Conclusion

The recent actions demonstrate a calibrated Chinese response: China sanctions Hanwha subsidiaries and pairs the blacklist with targeted port fees and export restrictions to defend perceived national security interests. These measures have immediate commercial consequences for affected shipping firms and broader strategic implications for maritime supply chains. COINOTAG will monitor official statements from China’s Ministry of Commerce, China’s Ministry of Transport, and corporate responses for further developments and analysis.

Publication: 2025-10-14. Updated: 2025-10-14. Author/Organization: COINOTAG.

Sources (plain text): China’s Ministry of Commerce (Mofcom); China’s Ministry of Transport; CNBC (translated quote published); statements from Hanwha USA spokesperson Linda Johnson; public equity market data on Hanwha Ocean share movement.