China has sanctioned five U.S.-based subsidiaries of Hanwha, barring Chinese entities from engaging in business with them. This action comes amid allegations of their involvement in a U.S. Section 301 investigation into China's maritime and shipbuilding industries. In addition, China has introduced a 400 yuan ($56) per net ton port fee on vessels linked to the U.S. and expanded its rare earth export controls. The sanctions have had immediate market repercussions, with Hanwha Ocean shares dropping over 8% in Seoul following the announcement. These measures reflect escalating tensions between the U.S. and China, particularly in strategic sectors such as shipbuilding and rare earths.