China Railway Construction Corporation (CRCC) and rolling-stock maker CRRC have been named on a list of Chinese companies that the Pentagon says are too close to the Chinese state and its armed forces, opening them up to future sanctions. Also on the list are China’s two main nuclear power companies, one of which has a stake in the Hinkley Point C station now being built in the UK. The US Defence Department published the names to inform Congressional committees and warn potential clients and investors in the companies that the US government regards them as a security risk. The list was mandated by a 1999 defence policy law that required the compilation of a list of firms “owned or controlled” by the People’s Liberation Army, and that also exported commercial goods or services. It is understood that such a list was never produced until now. Some US media speculate that the list is an attempt to boost President Donald Trump’s anti-China credentials ahead of the November election. Although there are no immediate consequences for the listed firms, the law says the president may impose sanctions on them. It is therefore likely to have a chilling effect on the companies’ dealings with US partners, and may make other companies and governments wary of entering into commercial relationships with them.
Global Construction Review 25th June 2020 read more »