China imposes sanctions on American subsidiaries of South Korean shipping giant

Bloomberg reports on this.

Sanctions against five American divisions of Hanwha Ocean caused global stock markets to fall, as investors reduced their hopes for an easing of tensions between the world's two largest economies. Hanwha Ocean's shares fell 6.2%, while Chinese shipbuilders' shares, on the contrary, rose.

China's actions are exacerbating a long-standing dispute with the US over dominance at sea. Both sides have already imposed special port fees on each other's ships, and the US has enlisted allies — notably South Korea — to help revive the American shipbuilding industry. This confrontation has global implications, as maritime transport accounts for more than 80% of international trade.

According to Bloomberg, over the past decade, Chinese shipbuilders have surpassed their South Korean and Japanese competitors to become the world's largest shipbuilders, while the American industry has nearly collapsed. The Trump administration's initiative to revive shipbuilding in the US has opened up opportunities for South Korean companies to expand their influence, with Seoul pledging to invest $150 billion in developing American ambitions in this sector.

Shipping is just one of the points of tension in relations between China and the US. Beijing has tightened export controls on rare earth metals, while the US has expanded restrictions on China's access to microchips and threatened additional tariffs of 100%.

Source: Babel, Bloomberg