The Chinese sanctions on U.S. Hanwha Ocean affiliates this week are intended to undermine South Korea's cooperation with the United States and "to force" Washington's Asian allies, according to a spokesperson for the U.S. State Department on Friday.

China announced the new sanctions on Tuesday, as the U.S. began charging extra port fees to each other's ships in the latest exchange of a long-running trade war. The meeting between the leaders of both countries is scheduled for the next few days.

China's Commerce Ministry has banned transactions with Hanwha Ocean affiliates in the United States, citing potential security risks arising from their participation in "relevant investigative activity" of the U.S. Government.

A spokesperson for the State Department said that China's targetting of Hanwha was an irresponsible effort to interfere with private company operations and undermine U.S. - ROK (Republic of Korea), cooperation in revitalizing American shipbuilding.

In a statement, the spokesperson stated that "China's action... is the latest in a series of attempts by China to coerce South Korea."

Five companies are now under Chinese sanctions, including the Philly Shipyard, a U.S.-based company owned by Hanwha. Hanwha is the largest shipbuilder in the world and has won contracts for the repair and overhaul of U.S. Navy vessels.

The company's subsidiaries will also construct a LNG carrier flying the U.S. flag.

South Korea pledged to invest up to $150 billion in the U.S. shipbuilding industry, as part of trade negotiations with Washington to lower U.S. tariffs on South Korean products. (Reporting and editing by Jack Kim, David Brunnstrom, Ed Davies, Chris Reese)

(source: Reuters)