Background: The site was a major American naval base during the Cold War. In 2006, a local unit of a South Korean company leased it and employed 20,000 people to build cargo ships. Then earlier this month, the company filed for bankruptcy, putting the site up for grabs.

What now? Officials said two Chinese companies were among the several foreign firms expressing interest in the site. But the country’s defense secretary is now suggesting keeping the shipyard under government control to keep it out of Beijing’s hands.

Why it matters: The shipyard is changing hands amid growing concern about Chinese companies, even those that aren’t government controlled, acting as proxies for Beijing’s influence and espionage efforts. At the same time, China continues to occupy and build military bases on islands in the South China Sea, near the Philippines.

Here’s what else is happening

U.S. shutdown: President Trump hit back at House Speaker Nancy Pelosi for threatening to delay his State of the Union address, by postponing her planned trip abroad.

Jamal Khashoggi: A new book by three Turkish journalists offers the most comprehensive description of the killing of the Saudi dissident in Istanbul last year, drawing on audio recordings obtained by Turkish intelligence officials.

Hitachi: The company said it was suspending work on a $19.3 billion nuclear power plant in North Wales, which had been expected to provide hundreds of new local jobs, after the British and Japanese governments failed to agree on financial terms.