China has placed five US subsidiaries of South Korean shipbuilder Hanwha Ocean on its sanctions list, accusing them of aiding Washington's efforts to impose punitive fees on Chinese vessels, reports London's Financial Times.

Beijing said the sanctions were part of a broader investigation into foreign entities allegedly supporting US actions aimed at curbing China's influence in global shipbuilding. The move coincides with renewed tensions in trade negotiations between China and the United States.

China's ministry of commerce announced that it had invoked its anti-foreign sanctions law against Hanwha's US units. The announcement triggered a sharp market reaction, sending Hanwha Ocean's shares down by as much as eight per cent.

The ministry said Hanwha's subsidiaries "assisted and supported" the US government in its investigation and measures targeting China's maritime, logistics and shipbuilding sectors. The sanctions underscore Beijing's growing use of legal tools to retaliate against perceived foreign interference.