U.S. Sanctions State-Owned Chinese Infrastructure Company That Has a Huge Presence in Africa

The move by the United States last week to sanction the China Communications Construction Company (CCCC) could have far-reaching implications that extend all the way to Africa, where the state-owned construction giant has an enormous presence.

The U.S. State and Commerce departments imposed visa and export restrictions on 24 Chinese companies, including CCCC, for their involvement in building artificial islands in the highly-contested South China Sea. Although these new sanctions were specifically targeted at Chinese entities operating in the Western Pacific, there’s a real risk that African countries could become ensnared in this rapidly escalating confrontation.

Just as with the U.S. campaign against telecom giant Huawei, these new U.S. measures aim to restrict American companies from supplying U.S.-origin technology to CCCC and the other Chinese firms on the list without a license. Given that CCCC is building a number of major African infrastructure projects (see below for details), those initiatives are now potentially vulnerable to disruption since it wouldn’t take a big leap for the U.S. to extend the new export control restrictions to CCCC’s operations beyond Asia.

The U.S. seems to be fully aware of CCCC’s presence in Africa and accused the company of engaging in a wide range of malfeasance from corruption to predatory financing to environmental destruction in a number of countries including Kenya and Tanzania.

Why These Latest U.S. Sanctions Against Chinese Companies May Not Actually Do Anything

  • NO ALLIES: CCCC has projects in 50 African countries and a huge array of initiatives underway throughout Latin America, the Middle East, and Southeast Asia. Given that political leaders in these regions have a lot at stake with CCCC-led infrastructure building, they’ll likely be hesitant to endorse any U.S.-led effort that could potentially jeopardize these projects.

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The post U.S. Sanctions State-Owned Chinese Infrastructure Company That Has a Huge Presence in Africa appeared first on The China Africa Project.



source https://chinaafricaproject.com/2020/08/31/u-s-sanctions-state-owned-chinese-infrastructure-company-that-has-a-huge-presence-in-africa/?utm_source=rss&utm_medium=rss&utm_campaign=u-s-sanctions-state-owned-chinese-infrastructure-company-that-has-a-huge-presence-in-africa

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