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for the destruction of coral reefs to build artificial islands. U.S. companies cannot work
with the CCCC or its subsidiaries without a special license.
Q2. Why does the US choose this time to issue those sanctions?
ANSWER: The restrictions imposed on Chinese officials and state-owned enterprises
are a further step in the Trump Administration’s anti-China campaign that was sparked
by U.S. official outrage at China’s mishandling of the coronavirus pandemic in Wuhan
in 2019. U.S. sanctions are a logical follow up of Secretary of State Mike Pompeo’s
strident call for an international coalition to oppose the Communist Party of China
regime.
President Donald Trump is taking a strong anti-China line in order to bolster his
campaign for re-election on 3 November this year. Trump is doing this in order to
distract public attention from his handling of the COVID -19 pandemic and the
deterioration of the U.S. economy. In other words, Trump is trying to blame China for
his shortcomings. Trump also argues that his opponent, Joe Biden, is soft on China.
Q3. What do you think is the next step?
ANSWER: The CCCC has played a prominent role in Xi Jinping’s Belt and Road Initiative
(BRI) as one of the major contractors for its projects. The Trump Administration will
expand its anti-China campaign to criticize Beijing for “corruption, predatory
financing, environmental destruction and other abuses” in countries that are
participating in the BRI. If Trump is returned to office, he may pressure and threaten
European and other countries with similar sanctions – visa and license restrictions – if
they continue to cooperate with the CCCC and its subsidiaries.
The Trump Administration will expect Southeast Asian countries to be grateful for U.S.
actions that enable them to access their oil and gas resources. President Trump will
expect some show of support for his anti-China policies.
Suggested citation: Carlyle A. Thayer, “South China Sea: U.S. Sanctions Chinese
Companies,” Thayer Consultancy Background Brief, August 27, 2020. All background
briefs are posted on Scribd.com (search for Thayer). To remove yourself from the
mailing list type, UNSUBSCRIBE in the Subject heading and hit the Reply key.
Thayer Consultancy provides political analysis of current regional security issues and
other research support to selected clients. Thayer Consultancy was officially
registered as a small business in Australia in 2002.