In response to the U.S. Section 301 investigation targeting China’s maritime, logistics, and shipbuilding industries, China’s Ministry of Commerce announced on October 14 countermeasures against five U.S.-related subsidiaries of Hanwha Ocean, effective October 14, 2025.
The decision will impose countermeasures against five US subsidiaries of Hanwha Ocean because they assisted and supported the US government’s investigation, endangering China’s sovereignty, security, and development interests.
In accordance with Articles 3, 4, 6, 9, 10 and 15 of the Anti-Foreign Sanctions Law of the People’s Republic of China, and Articles 3, 5, 8 and 10 of the Provisions on Implementing the Anti-Foreign Sanctions Law of the People’s Republic of China, and with the approval of the National Coordination Mechanism for Countering Foreign Sanctions, China has decided to include five U.S.-related subsidiaries of Hanwha Ocean Co., Ltd.—namely Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC and HS USA Holdings Corp.—in the countermeasure list, and impose the following countermeasures: Organizations and individuals within the territory of the People’s Republic of China are prohibited from conducting relevant transactions, cooperation and other activities with these entities.
It is understood that Hanwha Philly Shipyard Inc., which appears on the sanctions list, was formerly known as Philly Shipyard. Hanwha Group, the parent company of Hanwha Ocean, acquired it for $100 million at the end of 2024 and subsequently renamed it.
The shipyard not only undertakes new shipbuilding projects but also provides multiple services including repairs, overhauls, and conversions. Hanwha Group plans to establish it as a key base for the U.S. Navy’s shipbuilding and maintenance, repair, and overhaul (MRO) operations, and has announced a $5 billion investment for expansion and upgrades.
Hanwha Shipping LLC, also included on the sanctions list, recently placed an order for 12 new vessels with Hanwha Philly Shipyard Inc.
Data indicates that Hanwha Philly Shipyard Inc. operates the largest dry dock in the U.S., spanning 480,000 square meters. Its operations extensively cover both government and commercial projects, encompassing shipbuilding, repair, and maintenance services. The shipyard specializes in constructing merchant vessels for coastal transportation, having built approximately 50% of the large merchant ships in the United States that comply with the Jones Act, including tankers and container ships.
As China’s Ministry of Commerce announced countermeasures against five U.S.-related subsidiaries of Hanwha Ocean, the Ministry of Transport issued an announcement titled “On Launching an Investigation into the Impact on the Security and Development Interests of the Shipping Industry, Shipbuilding Industry, and Related Industrial Chains and Supply Chains.”
In accordance with the announcement, to safeguard the security and development interests of China’s shipping industry, shipbuilding industry, and related industrial and supply chains, the Ministry of Transport, together with the Ministry of Industry and Information Technology and other relevant departments, will conduct an investigation into the following matters: the impact or potential impact of the U.S. Section 301 Investigation on the security and development interests of China’s shipping industry, shipbuilding industry, and related industrial and supply chains; whether relevant enterprises, organizations or individuals have engaged in acts of implementing, assisting in or supporting the U.S. discriminatory restrictive measures against China in the shipping industry, shipbuilding industry, and related industrial and supply chains; and other related matters. Corresponding measures will be introduced in a timely manner based on the investigation results in the follow-up.
It is worth noting that this marks yet another round of sanctions imposed by China against U.S. shipbuilding and offshore engineering companies in recent times.
On September 25, China’s Ministry of Commerce announced that it had added three U.S. companies to its list of unreliable entities and placed three U.S. entities under export control restrictions. Among them are three shipbuilding-related companies: Huntington Ingalls Industries, Inc., Saronic Technologies, Inc., and Oceaneering International, Inc..
Data shows that Huntington Ingalls Industries is the largest defense shipbuilder in the U.S., operating two major shipyards: Newport News Shipbuilding (NNS) and Ingalls Shipbuilding (IS). Ingalls Shipbuilding primarily designs, constructs, and maintains amphibious assault ships, destroyers, and Coast Guard cutters for the U.S. Navy and U.S. Coast Guard. Newport News Shipbuilding, with over 135 years of history, is responsible for building surface combatants, amphibious warfare ships for the U.S. Navy, and Coast Guard cutters.
Saronic Technologies, Inc. is an American defense technology company dedicated to developing and manufacturing intelligent autonomous surface vessels (ASVs) for naval and maritime forces, offering products in multiple specifications.
Oceaneering International, Inc. is a provider of oilfield engineering services and products, primarily serving the offshore energy industry. Its technologies are also applied in defense, material handling, aerospace, scientific research, and renewable energy sectors, encompassing remote-operated vehicles (ROVs), specialized subsea equipment for oilfields, and more.