China targets five US subsidiaries of South Korea’s Hanwha Ocean, sending its shares down 8%.

Shares of South Korean shipbuilder Hanwha Ocean fell more than 8% on Tuesday after China imposed sanctions on five of its U.S. subsidiaries, escalating tensions with Washington over its alleged involvement in an investigation into the Chinese shipping industry.

The sanctioned subsidiaries are Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC and HS USA Holdings Corp., according to a statement from the Commerce Department. Chinese.

A Mofcom spokesperson said in a separate statement translated by CNBC: “Hanwha’s U.S. subsidiaries have assisted and supported the U.S. government’s investigations and measures against China’s maritime, logistics, and shipbuilding sectors. China is deeply dissatisfied and firmly opposes them.”

The order, effective immediately, will prevent Chinese organizations and individuals from doing business with sanctioned companies, the ministry said, adding that the move aims to protect China’s sovereignty and security.

Hanwha Ocean did not immediately respond to CNBC’s request for comment.

Earlier on Tuesday, Beijing confirmed that it had begun collecting additional port fees on US-bound ships, while clarifying that Chinese-made ships would be exempt from the fees.

The move came in the wake of the US decision to impose heavy fees on Chinese ships calling at US ports starting Tuesday at 12:01 AM EST. China responded by imposing a similar duty of 400 yuan ($56) per net ton on US ships, starting the same day. The tonnage of container ships can range from 50,000 to 220,000 tons.

Beijing also unveiled a new framework for Restricting rare earth exports It expanded its blacklist of American companies. In response, US President Donald Trump threatened to impose additional 100% tariffs on Chinese imports, prompting Beijing to reiterate its restrictions on rare earths as a precaution. Make a project..

In a Separate statementChina’s Ministry of Transport said it had launched an investigation into the impact of Washington’s Article 301 investigation on China’s shipping and shipbuilding industries.

The investigation will also evaluate whether companies, organizations or individuals helped the United States “engage in discriminatory restrictive behaviors” against the Chinese shipping supply chain, the department said.