Beijing: China announced Tuesday it will impose retaliatory measures against five U.S.-based subsidiaries of South Korean shipbuilder Hanwha Ocean Co., accusing them of cooperating with a U.S. investigation targeting China's maritime and shipbuilding industries.

According to Yonhap News Agency, the Chinese commerce ministry stated that Hanwha Ocean's U.S. affiliates assisted and supported the U.S. government's Section 301 investigation and related actions against China's maritime, logistics, and shipbuilding sectors.

The affected firms are Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings Corp. The measures include prohibiting Chinese individuals and organizations from engaging in transactions or cooperation with the U.S. units of Hanwha.

In particular, Hanwha Philly Shipyard, the first U.S. shipyard acquired by Hanwha Ocean last year, has been widely viewed as a symbol of shipbuilding cooperation between South Korea and the United States. The sanctions come as U.S. President Donald Trump has repeatedly emphasized the need for shipbuilding cooperation between Seoul and Washington since taking office. Hanwha Ocean had been expected to be one of the biggest beneficiaries under the allies' strengthened shipbuilding ties.

Industry insiders in Seoul assess that Beijing's move is both a countermeasure against Washington and a warning to South Korea, China's biggest rival in the shipbuilding sector. "From China's perspective, this appears to be a two-pronged strategy," said Choi Seok-young, a former South Korean ambassador to Geneva and senior adviser at law firm Lee and Ko. "It's a way to hit back at the U.S. over the port fees while also sending a warning shot to Seoul."