The United States on Aug. 26 took action against 24 Chinese state-owned companies, as well individuals involved in Beijing's military aggression in the disputed South China Sea, as the Trump administration escalates its responses to threats posed by the Chinese Communist Party.
The State Department also announced it will impose visa restrictions on Chinese citizens "responsible for, or complicit in" building or militarizing these artificial islands or Beijing's "use of coercion against Southeast Asian claimants to inhibit their access to offshore resources." The individuals will be denied entry into the United States, it stated, adding that this may also apply to the individuals' family members.
Beijing has territorial claims over most of the waterways covering the South China Sea, which were ruled as unlawful in a 2016 decision by an international tribunal. Philippines, Vietnam, Malaysia, Brunei, and Taiwan have competing claims in the waterways. Home to rich fishing grounds and potentially valuable natural resources, the South China Sea is also one of the world’s major shipping routes.
Beijing used state-owned companies to dredge and construct more than 3,000 acres of artificial features in the South China Sea, which include air defense and anti-ship missile installations, the Commerce Department stated.
Among the companies added on the Commerce Department's "entity list" are five subsidiaries of Chinese state-owned construction giant China Communications Construction Company (CCCC).
Secretary of State Mike Pompeo said in a statement that CCCC has led the dredging of outposts, and is also one of the lead contractors used by Beijing in its Belt and Road Initiative, a massive infrastructure investment project aimed to expand the regime's influence worldwide. Washington has criticized the project as a "debt trap" for developing countries that may be saddled with heavy debt burdens they can't repay.
"CCCC and its subsidiaries have engaged in corruption, predatory financing, environmental destruction, and other abuses across the world," Pompeo said.
"The PRC [People's Republic of China] must not be allowed to use CCCC and other state-owned enterprises as weapons to impose an expansionist agenda."