Seoul: South Korea is actively engaging in dialogue with China to mitigate the effects of Beijing's decision to impose sanctions on the U.S.-based subsidiaries of South Korean shipbuilder Hanwha Ocean Co., as stated by the presidential office on Tuesday.
According to Yonhap News Agency, China announced its intention to enforce retaliatory measures against five U.S.-based subsidiaries of Hanwha Ocean. The action stems from allegations that these subsidiaries were cooperating with a U.S. investigation directed at China's maritime and shipbuilding sectors.
In response, South Korea has initiated communication and response strategies through the South Korea-China trade channel to minimize potential damages. The presidential office noted the difficulty in predicting further sanctions but assured continuous monitoring of the situation.
The immediate impact of the sanctions appears limited, given Hanwha Ocean's minimal business engagements with Chinese companies. However, the office emphasized the importance of assessing the potential implications on Seoul's shipbuilding cooperation initiatives with the United States. China's retaliatory measures include restrictions on Chinese entities from engaging in transactions or collaborations with Hanwha's U.S. units.