CHINA’S Commerce Ministry said toay that it was banning dealings by Chinese companies with five subsidiaries of South Korean shipbuilder Hanwha Ocean.

The ministry also announced that it was also investigating a probe by Washington into China’s growing dominance in world shipbuilding.

It said the US probe threatens China’s national security and its shipping industry and cited Hanwha’s involvement in the investigation.

The US Trade Representative launched the section 301 trade investigation in April 2024. It determined that China’s strength in the industry was a burden on US businesses.

International shipping and shipbuilding have become a recent focus of trade friction between Washington and Beijing.

Each side has imposed new port fees on each others’ vessels that took effect on Tuesday.

The sanctioned entities are Hanwha Shipping LLC, Hanwha Philly Shipyard Inc, Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC and HS USA Holdings Corp.

China said its new port fees would apply to ships owned by US companies or other entities or individuals, those operated by US entities including those having a US stake of 25 per cent or more, vessels flying a US flag and vessels built in the US.

US businesses represent just 2.9 per cent of world fleet ownership by capacity and 0.1 per cent of global shipbuilding tonnage. Chinese shipyards received 64.2 per cent of all new ship orders worldwide over the last five years.