US sanctions over South China Sea will not affect blacklisted Chinese construction giant CCCC, company says

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The dredging business of state-owned engineering giant China Communications Construction Company (CCCC) will not be adversely affected by fresh US sanctions.

On Wednesday, the United States Department of Commerce blacklisted 24 Chinese state-owned companies, including five CCCC dredging subsidiaries, for their roles in helping the Communist Party “militarise” outposts in the contested South China Sea.

“The overseas dredging business accounts for a relatively small portion, and no dredging business is conducted in the US by the company. While a direct impact would be unlikely, there were questions as to how CCCC’s foreign subsidiaries, including mid-sized Texas-based marine engineering group Friede & Goldman, would be able to trade with its parent company. CCCC did not respond to requests for comments on Friede & Goldman.

Its company profile online indicates it has projects in China, Singapore, India, Mexico and the Middle East. There were no indications of any dealings with the US. John Holland, which CCCC acquired from Leighton Holdings in 2015 for A$1 billion, is active in Australasia and Southeast Asia, with projects such as the State of Victoria government’s A$11 billion Melbourne Metro rail tunnel, but does not conduct business in the US.

 

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