
Chinese firms sanctioned by US are deeply embedded in Asean projects
- Washington may dangle inducements to get regional backing for the sanctions, fuelled by the companies’ actions in the South China Sea
- But it shouldn’t force countries to make tough choices, given that firms such as CCCC are already part of the region’s Belt and Road Initiative projects
Thus far, the US announcement has not elicited much reaction from regional capitals, except from the Philippines, even though one of the companies – the China Communications Construction Company (CCCC) – has a portfolio of projects in the region.
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Compared with Indonesia and Malaysia, CCCC’s footprint in Philippine infrastructure remains modest. Its biggest break so far was a project to build an airport in Cavite. It also got a contract to dredge a port in Cebu.
A subsidiary, China Road and Bridge Corporation (CRBC), is also building bridges across the Pasig River in Metro Manila as part of a Chinese grant to the country. But its other engagements in a number of projects are still in the feasibility study stage. These include highways in Bicol, a bus rapid transit system in Metro Manila and a railway connecting Subic and Clark in the main island of Luzon.

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Elsewhere in the region, CCCC is involved in the New Yangon City and the proposed Kyaukpyu deep water port and economic zone, part of a basket of projects under the China-Myanmar Economic Corridor, a component of the belt and road project.
In Cambodia, its subsidiary CRBC bagged a deal to build an expressway to link the capital Phnom Penh with the country’s deep-sea port, Sihanoukville.
The ban may offer opportunities for other Chinese firms not on the list.
On the flip side, the ban may offer opportunities for other Chinese firms not on the list – a welcome respite from intense competition, especially for private and second-tier players.

Washington may dangle relocation of US investments moving out of China as an inducement to get regional backing for the sanctions. It may also dissuade US investors from setting up shop or expanding business in countries deeply engaged with blacklisted Chinese firms. The move may support regional attempts to lessen the influence of Chinese contractors by bringing in companies from Japan, South Korea and others to work with local partners in consortiums.
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This said, applying sanctions retroactively to upset ongoing projects or those that had already reached an advanced stage of negotiations may backfire. Forcing countries to make tough choices may alienate allies and partners – an unwise move, especially if great power rivalry will define international relations in the coming years. Lastly, so long as better alternatives are few and far between, untangling China’s role in regional infrastructure will be an uphill climb.
