The government is in communication with China to minimize the impact on Korea of Beijing’s recent sanctions on five U.S. subsidiaries of Hanwha Ocean.

The presidential office said on Tuesday that the government has activated a South Korea-China trade channel to work on monitoring the situation and minimizing potential damage from the sanctions.

The top office said it will evaluate later whether the sanctions will impact the MASGA project, South Korea’s initiative to support the revival of the U.S. shipbuilding industry.

It added that the immediate effect is expected to be limited, given the relatively few transactions between the targeted companies and Chinese entities.

Earlier, China prohibited its companies and individuals from conducting business with, cooperating with or engaging in any activities involving Hanwha Ocean’s five U.S. subsidiaries.