US raises concern on Chinese firm in Manila Bay reclamation

MANILA, Philippines — The United States embassy in Manila has raised with the Philippine government its concerns over ongoing reclamation projects in Manila Bay and the project ties with a Chinese firm blacklisted for helping Beijing construct and militarize artificial islands in the South China Sea.

US embassy spokesman Kanishka Gangopadhyay said yesterday the embassy is in regular discussions with the government regarding ongoing reclamation projects in Manila Bay.

“We have expressed concerns about the potential negative long-term and irreversible impacts to the environment, the resilience to natural hazards of Manila and nearby areas and to commerce,” Gangopadhyay said in a statement.

The embassy, he said, is concerned with the impact the project will have on the environment as well the involvement of China Communications Construction Co. (CCCC).

“We are also concerned that the projects have ties to the China Communications Construction Co., which has been added to the US Department of Commerce’s Entity List for its role in helping the Chinese military construct and militarize artificial islands in the South China Sea,” Gangopadhyay added.

The company has also been cited by the World Bank and Asian Development Bank for engaging in fraudulent business practices.

“We continue to support high quality, sustainable and transparent investments to benefit the Filipino people and will continue to engage with the appropriate authorities on this matter,” he stressed.

In 2020, the US blacklisted what it described as predatory, China state-owned enterprises responsible for and central to the militarization and coercion in the South China Sea.

According to the US Commerce Department announcement, the companies including CCCC have been targeted “for their role in helping the Chinese military construct and militarize the internationally condemned artificial islands in the South China Sea.”

The US urged all governments, parties and institutions around the world to assess the risk and reconsider business deals with the “predatory” Chinese state-owned enterprises, including the company central to the militarization and coercion in the disputed waters.

The State Department and Commerce Department said the blacklisting of Chinese companies and former state secretary Michael Pompeo’s announcement on the imposition of visa restrictions on Chinese individuals, including executives of state-owned enterprise responsible for Beijing’s reclamation, construction and militarization of disputed outposts and coercion of Southeast Asian claimants are in line with US policy on Chinese maritime claims in the South China Sea.

China welcomed former president Rodrigo Duterte’s rejection of the US call on governments worldwide to reconsider business deals with the blacklisted China state-owned enterprises.

Beijing was pleased with Duterte’s thumbing down of recommendations even from his own officials to terminate government contracts with the Chinese companies.