By Innovation Times Global Trade Desk
October 14, 2025 | Beijing / Washington, D.C.
China has announced new restrictions targeting the U.S. operations of South Korean shipbuilder Hanwha Ocean, escalating tensions with Washington as President Donald Trump’s latest tariff measures continue to ripple through global trade markets.
The move marks Beijing’s strongest retaliation yet to the White House’s sweeping tariff package unveiled last week, which imposed new duties on Chinese steel, electronics, and maritime equipment. The Chinese Ministry of Commerce said Monday that it would begin “regulatory reviews and operational curbs” on Hanwha Ocean’s U.S. subsidiaries, citing “national security and fair competition concerns.”
Although Hanwha Ocean is based in South Korea, it maintains major production and shipping partnerships with U.S. defense and energy contractors. The new Chinese restrictions are widely seen as a strategic signal aimed at disrupting American maritime logistics and retaliating against Washington’s growing trade pressure.
“Beijing is sending a clear message that it will not remain passive in the face of unilateral tariffs,” said Li Wei, a senior analyst at the China Institute of International Trade. “By targeting companies connected to U.S. operations, China is applying pressure where it hurts — in the global supply chain.”
President Trump has defended his tariff strategy, describing it as a “decisive measure to protect American industry and restore manufacturing power.” The administration insists that the new trade barriers are designed to safeguard U.S. jobs, reduce dependence on foreign imports, and strengthen national security.
However, economists warn that the tit-for-tat measures could intensify supply chain disruptions and raise costs for American consumers. Shipping analysts note that Hanwha Ocean’s U.S. affiliates play a critical role in offshore energy and naval construction, meaning Chinese restrictions could ripple across both commercial and defense sectors.
Global markets reacted sharply to the latest developments. Shipping stocks in Seoul and New York dipped, while steel futures in Shanghai rose more than 3 percent amid fears of new trade bottlenecks. The World Trade Organization (WTO) has called for restraint, urging both sides to resume dialogue before tensions escalate into a broader trade war.
The confrontation underscores how Trump’s tariff policies are reshaping the international economic landscape. As the administration doubles down on its “America First” trade agenda, Beijing’s countermeasures appear increasingly targeted and precise, focusing on industries where the U.S. relies heavily on cross-border cooperation.
Diplomats from both countries are expected to meet later this week in Geneva for emergency consultations under WTO guidelines. Trade experts say the outcome could determine whether the two largest economies step back from confrontation or move toward a prolonged economic standoff.
