US warns to ‘manage risk’ in dealings with China group involved in Sri Lanka’s Port City
ECONOMYNEXT – The United State has warned countries to manage risk when dealing with a state enterprise and subsidiaries in China that has reclaimed the sea in South China Sea and in Sri Lanka.
The US slapped export controls on several subsidiaries of China Communication Construction Company (CCCC) over building artificial islands in the South China Sea.
“.. [T]he United States further encourages countries to manage risk when dealing with CCCC and its subsidiaries,” the US embassy in Colombo said in a statement.
“CCCC has done untold environmental damage, been involved with malign actions around the world, and caused instability in the Indo-Pacific.”
Sri Lanka’s Port City project involving the extension of the capital Colombo in the sea is carried by China Harbhour Engineering and a sub-subsidiary which were not named in the list published by the US.
“Since 2013, the PRC has used its state-owned enterprises to dredge and unlawfully reclaim more than 3,000 acres in the South China Sea, destabilizing the region, trampling on the sovereign rights of its neighbors, and causing untold environmental devastation,” the statement said.
“CCCC led the destructive dredging of the PRC’s South China Sea outposts and is also one of the leading contractors used by Beijing in its global Belt and Road Initiative (BRI) strategy. ”
The sanctions come as the CCCC unit has completed the reclamation and is has been given tax benefits to seek investors to buy the reclaimed land build on it.
CCCC in a statement said the sanctions mainly targeted a unit called CCCC Dredging and its sub-subsidiaries, which anyway did not use any US technology requiring export licenses. (Colombo/Sept04/2020)