Korean Firm Caught in US-China Trade War Crossfire

Tensions in the US-China trade war resurfaced as China imposed restrictions on the American units of Hanwha Ocean Co., one of South Korea’s largest shipbuilders. The move comes in response to US measures targeting China’s shipping sector.

According to China’s Ministry of Commerce, the curbs affect five US entities of Hanwha Ocean Co. At the same time, the Ministry of Transport is probing the impact of the US Trade Representative’s Section 301 investigation into China’s maritime sector. It has hinted that further retaliatory measures could be introduced.

The announcements raised concerns that the trade conflict could escalate again. This follows a stock market selloff on Friday triggered by rising tensions between Washington and Beijing. These worries had eased slightly over the weekend. Former President Donald Trump indicated a willingness to negotiate with China. Additionally, his administration softened its aggressive tariff rhetoric. This rhetoric had included a threat of 100% tariffs in response to Chinese export controls.

China and the US have continued dialogue through their economic and trade consultation mechanism. They held working-level talks on Monday, according to the Ministry of Commerce. The ongoing situation highlights the delicate balance in global trade. Actions against one company or sector can quickly influence broader market sentiment. International relations are also affected.

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