US Sanctions 24 Chinese Companies For Building Islands In South China Sea

The Trump administration on Wednesday sanctioned 24 Chinese companies for their roles in helping Beijing construct artificial islands in the South China Sea.

This is the first time the administration has justified sanctions against a Chinese firm because of Beijing’s efforts to extend its coastal waters at the expense of the Philippines, Vietnam, Malaysia and other countries. China has been building islands in the area since 2013.

“The United States, China’s neighbors, and the international community have rebuked the CCP’s sovereignty claims to the South China Sea and have condemned the building of artificial islands for the Chinese military,” Commerce Secretary Wilbur Ross said in a press release. “The entities designated today have played a significant role in China’s provocative construction of these artificial islands and must be held accountable.”

The list of companies includes the China Communications Construction Co., the largely state-owned, publicly traded multinational engineering and construction company that designs and builds major infrastructure like highways, airports and oil platforms. The State Department accused the company of engaging in corruption, predatory financing, environmental destruction and other abuses.

“The United States supports a free and open South China Sea. We respect the sovereign rights of all nations, regardless of size, and seek to preserve peace and uphold freedom of the seas in a manner consistent with international law,” Secretary of State Mike Pompeo said in a press release.

The State Department barred U.S. entry by those “responsible for, or complicit in, either the large-scale reclamation construction or militarization of disputed outposts in the South China Sea, or [China’s] use of coercion against Southeast Asian claimants to inhibit their access to offshore resources.”

China has reclaimed more than 3,000 acres in the region, extending its territorial waters and “destabilizing the region, trampling on the sovereign rights of its neighbors, and causing untold environmental devastation,” Pompeo said.

“The PRC must not be allowed to use CCCC and other state-owned enterprises as weapons to impose an expansionist agenda,” Pompeo said. “The United States will act until we see Beijing discontinue its coercive behavior in the South China Sea, and we will continue to stand with allies and partners in resisting this destabilizing activity.”

The sanctions will prevent the cited companies from buying American products.

Previous sanctions lists have involved national security concerns and human rights violations.

Wednesday’s action is the latest in a series that have soured U.S.-China relations amid accusations from President Trump that Beijing did not do enough to prevent the coronavirus from turning into a global pandemic. Other actions have included U.S. moves to bar social media apps TikTok and WeChat and closed its consulate in Chengdu. In retaliation, China has sanctioned a number of U.S. officials including Sen. Ted Cruz, R-Texas, and closed its consulate in Houston.