China’s recent sanctions on U.S. affiliates of South Korean shipbuilder Hanwha Ocean are aimed at undermining U.S.–South Korea cooperation and pressuring Washington’s ally, according to a U.S. State Department spokesperson on Friday (Oct 17). Beijing announced the sanctions on Tuesday as both the U.S. and China imposed new port fees on each other’s vessels, escalating their ongoing trade dispute ahead of a planned leaders’ meeting.

China’s Commerce Ministry said the ban on transactions and collaboration with Hanwha Ocean’s U.S.-linked affiliates was due to security concerns related to the company’s involvement in U.S. government investigations. A State Department spokesperson condemned the move as an “irresponsible attempt to interfere with a private company and weaken U.S.–ROK cooperation” in revitalizing American shipbuilding and manufacturing. The spokesperson added that it reflects a continued pattern of China’s efforts to coerce South Korea.

The sanctions affect five companies, including Philly Shipyard in the U.S., owned by Hanwha, which handles U.S. Navy ship repair and overhaul contracts and plans to build a U.S.-flagged LNG carrier. South Korea has committed up to US$150 billion to support the U.S. shipbuilding sector as part of trade negotiations seeking reduced U.S. tariffs on South Korean goods.

Disclaimer: This image is taken from Reuters.