The Trump administration warned China not to retaliate against foreign companies helping the US to develop critical industries

The Trump administration warned China against retaliating toward foreign firms assisting the United States in developing critical industries, following Beijing’s move last week to sanction the U.S. units of South Korea’s Hanwha Ocean Co. over its plans to invest in America’s maritime sector.

“China’s recent retaliatory actions against private companies across the globe are part of a broader pattern of economic coercion aimed at influencing American politics and controlling global supply chains by discouraging foreign investment in America’s shipbuilding and other key industries,” U.S. Trade Representative Jamieson Greer said in a statement Monday.

Greer’s warning comes amid a long-running series of maritime disputes between Washington and Beijing. China, which produces more than half of the world’s ships, has sought to expand its influence over the South China Sea, a vital trade route that carries over 80% of global commerce.

Although the United States maintains the world’s most powerful navy, its domestic shipbuilding capacity remains limited. The Trump administration has been encouraging investment from South Korea, the world’s second-largest shipbuilder, to help strengthen U.S. maritime manufacturing.

China’s sanctions last week directly targeted that effort, banning individuals and organizations in China from conducting business with Hanwha Ocean’s U.S. subsidiaries and warning of further retaliation against the industry.

“Attempts at intimidation will not stop the United States from rebuilding its shipbuilding base and responding appropriately to China’s targeting of critical industrial sectors for dominance,” Greer said.

The dispute reflects broader tensions: both nations have recently imposed special port fees on each other’s commercial vessels, while the United States plans to levy a 100% tariff on Chinese imports of essential port equipment and has proposed an additional 150% import tax on other cargo-handling machinery. Trump has also sought to limit Chinese control over strategic global ports, including those near the Panama Canal.

Shipping has become one of several flashpoints in the broader U.S.-China rivalry that continues to unsettle global investors. Beijing has tightened export restrictions on rare earth minerals, while Washington has expanded chip export controls and threatened additional tariffs.

Earlier Monday, President Donald Trump said he expects to discuss China’s territorial ambitions toward Taiwan with President Xi Jinping during their meeting at the Asia-Pacific Economic Cooperation summit in South Korea next week. Trump declined to say whether he anticipates Beijing linking trade concessions to Taiwan-related demands.