Asia Pacific

China takes steps against US-linked units of South Korea shipbuilder Hanwha

China has announced new restrictions on U.S.‑linked arms sales to units of the South Korean shipbuilder Han Wha. The move comes after the U.S. stepped up its export‑control regime on companies that could forward technology to China’s military.

The U.S.‑owned divisions of Han Wha, which manufacture naval vessels and aerospace parts, are now on China’s list of foreign entities that it will no longer allow to receive advanced weapons systems or high‑tech components. Chinese firms must not provide or support these units with military technology, including software, sensors or propulsion equipment, or face penalties.

Han Wha has been a key partner for the U.S. in maritime security, and its U.S. subsidiaries have worked on joint projects with the U.S. Navy. China’s new policy is meant to prevent the transfer of sensitive technology that could benefit U.S. competitors or allies. Experts say it signals China’s growing focus on tightening control over its defence supply chain.

The U.S. government has not immediately responded to China’s announcement, but officials are watching closely. Analysts predict the step could affect Han Wha’s future contracts in the U.S. market and could lead to tighter scrutiny of U.S. defence contractors that work with South Korea.

For businesses, the key takeaway is that any Chinese company dealing with Han Wha’s U.S.‑linked units must vet its suppliers carefully to avoid violating China’s export‑control rules. Failure to do so could trigger fines and limited access to the Chinese market.


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