[Click e-Stock] "Shipbuilding Stocks: China Sides with China, U.S. Sides with Us"

Published 15 Oct.2025 07:25(KST)

On October 15, Yuanta Securities analyzed that if tensions between the United States and China intensify, the domestic shipbuilding industry could actually benefit.

The previous day, China’s Ministry of Commerce announced that, based on the Anti-Foreign Sanctions Law, it would prohibit Chinese organizations and individuals from engaging in transactions, cooperation, or other activities with five U.S. subsidiaries of Hanwha Ocean. Following this announcement, Hanwha Ocean’s stock price fell by 5.7%.

Kim Yongmin, a researcher at Yuanta Securities, stated, “Companies expected to play a central role in expanding the shipbuilding industry in the United States have now been completely blocked from any association with China.” He added, “Even when considering energy import-export relations and recent trends, the impact of these sanctions is expected to be limited.”

He continued, “Ships built in the United States are not originally intended to be linked with China. U.S.-built vessels, which have no price competitiveness in the global shipbuilding market, are constructed specifically for transportation between U.S. ports.”

He explained, “The overall adjustment in the shipbuilding sector, including Hanwha Ocean, is due to concerns that China’s sanctions could escalate maritime disputes between the United States and China, potentially causing widespread damage to the domestic shipbuilding industry.”

Researcher Kim predicted, “If the shipbuilding and shipping disputes between the United States and China expand, domestic shipbuilders could instead benefit by taking on the role of agents for the United States.” He emphasized, “The reason the domestic shipbuilding industry is drawing particular attention in the U.S.-China maritime power struggle is because it is the only real competitor to China. China’s sanctions can actually be seen as evidence that China is feeling threatened.”