Shares of South Korean shipbuilder Hanwha Ocean fell more than 8% Tuesday after China sanctioned five of its U.S. subsidiaries, escalating tensions with Washington over their alleged involvement in a probe 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 China's Commerce Ministry.

"Hanwha's subsidiaries in the U.S. have assisted and supported the U.S. government's probes and measures against Chinese maritime, logistics and shipbuilding sectors. China is strongly dissatisfied and resolutely opposes it," a spokesperson at Mofcom said in a separate statement, translated by CNBC.

The order, effective im

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