Text | Xiaoqi
Source: All statements in this article have reliable information sources.
On October 14, 2025, global attention will focus on the economic game between China and the United States.
China's Ministry of Commerce issued an announcement announcing the imposition of sanctions on five US subsidiaries of Hanwha Marine Co., Ltd. This decision shocked the international community, because it was not only related to the 301 investigation of the US, but also directly affected the economic and trade relations between Korean enterprises and China!
China’s direct target of the sanctions were the five U.S. subsidiaries of Huawei Marine Co. Ltd. China’s Ministry of Commerce announced that these companies participated in a 301 survey conducted in the U.S. in suppressing China’s shipbuilding industry, providing the U.S. with commercial information about Chinese shipbuilding companies, and helping the U.S. restrict China’s maritime industry.
Hanwha Marine Co., Ltd. itself is a leading company in South Korea's shipbuilding industry. Formerly known as Daewoo Shipbuilding, Hanwha Marine Co., Ltd. has an important position in the global shipbuilding industry. Its subsidiaries 'business in the United States is closely related to the maintenance and renovation of U.S. warships, and even undertakes important projects in the U.S."Make American Shipbuilding Great Again"(MASGA) program. The U.S. 301 investigation into China is an attempt to limit the global competitiveness of China's shipbuilding industry through trade barriers. These South Korean companies acted as "helpers" in the US investigation, and this behavior naturally triggered a strong reaction from China.
China’s sanctions are not only an economic blow, they also send a clear signal that any foreign-owned enterprise that tries to hostile China will face consequences.
When China announced the sanctions, the Presidential Office of South Korea issued a statement on October 14th, saying that although the five sanctioned companies did not have many transactions with China, so the impact was relatively limited, the South Korean government would still pay close attention to this matter and prepare to communicate with China through economic and trade channels to avoid further deterioration of the situation.
This attitude of the South Korean government surprised a lot of people. Originally, everyone thought that South Korea, as a close ally of the United States, should stand on the side of the United States, at least publicly supporting the United States' pressure on China. However, South Korean President Lee Ming took a different strategy. He not only did not openly stand up for the United States, but chose to communicate with China and try to ease the contradiction between the two countries.
There are two main reasons why Korea is so cautious. First of all, China is South Korea's largest trading partner, especially in the shipbuilding industry, and South Korea's dependence on China is very high. Every year, South Korea's shipbuilding industry needs to import a large amount of steel, marine equipment and other materials from China, and China is often one of the largest buyers of South Korea's shipbuilding industry. If relations between the two countries deteriorate, South Korea's shipbuilding industry will be severely affected and may even risk supply chain disruptions.
Secondly, South Korea is very aware of the consequences of fierce confrontation with China when dealing with US-China relations. Under the current international situation, South Korea can't afford the price of a complete break with China, especially in the context of such a complicated game between China and the United States, South Korea needs to maintain its independence and avoid becoming a victim of the two major economies. Therefore, the response of the South Korean government is actually trying to strive for a more flexible diplomatic space for itself.
In the event, the Trump administration apparently did not expect South Korea to be so “low.” The United States once hoped to force South Korea to be harder in its policy towards China by giving South Korea more trade preferences. However, South Korean President Lee Ming did not stand on the side of the United States as Trump expected, but chose to communicate with China through diplomatic channels to try to solve the problem. This disappointed the Trump administration, because they had originally hoped to press on China to force allies to put pressure on China together and even push South Korea to the opposite side of China.
Trump’s disappointment is not without reason. Over the past few years, the United States has been trying to pull South Korea into its camp, especially on the Sino-American trade war and the South China Sea, where the United States hopes South Korea can stand with it and form pressure on China. The United States has even made some concessions in the US-Korean trade agreement, hoping to pull South Korea into its camp by economic means. However, the South Korean government’s response shows that the Li Ming government is not willing to stand in the Sino-American game, but hopes to find a balance between the two great powers.
South Korea's response shows that they do not intend to be "pawns" in the confrontation between the two countries. Lee Jae-myung's government clearly realized that relying too much on the United States or China would bring great risks, so it adopted a more independent and pragmatic strategy in diplomacy. In the future, South Korea may continue to maintain a balance between the United States and China, neither overly relying on the United States nor easily breaking off diplomatic relations with China.
However, this strategy is not without challenge. Under U.S. pressure, South Korea needs to find a balance between economic cooperation and security cooperation. And under Chinese pressure, South Korea cannot ignore the increasingly close economic and trade relations between the two countries. Overall, South Korea’s position is not only to consider the timing of the current situation, but also to maintain its independence in a complex international environment.
This round of game has made it clear to everyone how complex the global economy and diplomacy is. The next most worrying thing is whether South Korea can remain so stable. After all, on the one hand, the United States is an ally, on the other hand, China is an important trading partner, neither side can easily be guilty.
Source of information
Bureau of Safety and Control 2025-10-14 Decision No. 6 of 2025 of the Ministry of Commerce of the People's Republic of China on taking countermeasures against five related U.S. subsidiaries of Hanwha Marine Co., Ltd.
21st Century Economic Report 2025-10-14 22:29 China charges special port transaction fees for U.S. ships and accurately counter 301 investigation
Observer.com 2025-10-15 08:05 After China announced countermeasures, South Korea responded