US SANCTIONS CHINESE COMPANIES AND EXECUTIVES ACTIVE IN CONTESTED SOUTH CHINA SEA

On 26 August, he Wall Street Journal has reported that the US has unveiled a set of visa and export restrictions targeting Chinese state-owned companies and their executives involved in advancing Beijing’s territorial claims in the contested South China Sea, a new challenge to China involving the strategic waters.  The action of the State and Commerce Departments apply to a range of state-owned enterprises, including units of China Communications Construction Co (CCCC), a leading contractor for Chinese leader Xi Jinping’s Belt and Road initiative to develop infrastructure.  Visa restrictions to apply to people and businesses linked to activities in the disputed waters.  The visa restrictions will apply to individuals and businesses “responsible for, or complicit in, either the large-scale reclamation, construction, or militarisation 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.  The Commerce Department added 24 units of CCCC, including the China Communications Construction Company Dredging Group Company (CCCC Dredging) to an “entity list” of companies that US businesses are not allowed to transact with unless they have a special licence to do so. The South China Morning Post reports that disputes between China and the US over the South China Sea are commonly cited as a flashpoint for possible military conflict.  China Shipbuilding Group, the world’s largest shipbuilder, is another of the Chinese companies and individuals to be blacklisted by the US for its role in developing infrastructure in contested areas of the South China Sea

https://www.scmp.com/news/china/diplomacy/article/3098994/us-orders-fresh-sanctions-chinese-firms-over-south-china-sea

https://www.wsj.com/articles/u-s-imposes-visa-export-restrictions-on-chinese-firms-and-executives-active-in-contested-south-china-sea-11598446551

https://asia.nikkei.com/Politics/International-relations/US-China-tensions/US-blacklists-Belt-and-Road-builder-for-role-in-South-China-Sea

https://www.dw.com/en/south-china-sea-china-slams-us-over-illegal-sanctions/a-54719842

https://www.state.gov/briefing-with-senior-state-department-and-commerce-officials-on-state-department-visa-restrictions-placed-on-individuals-from-the-peoples-republic-of-china-and-commerce-department-restri/

https://www.commerce.gov/news/press-releases/2020/08/commerce-department-adds-24-chinese-companies-entity-list-helping-build

scs

https://bis.doc.gov/index.php/documents/regulations-docs/2347-744-supp-4-6/file

Author: raytodd2017

Chartered Legal Executive and former senior manager with Isle of Man Customs and Excise, where I was (amongst other things) Sanctions Officer (for UN/EU sanctions), Export Licensing Officer and Manager of the Legal-Library & Collectorate Support Section

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