Chinese construction giant CCCC aims to counter growing uncertainty with belt and road project push

Two weeks ago, the US Department of Commerce placed five subsidiaries of China Communications Construction Company (CCCC) on its Entity List

A total of 24 Chinese state-owned companies were blacklisted for their roles in helping ‘militarise’ outposts in disputed parts of the South China Sea

3-MIN READ3-MIN

China Communications Construction Company (CCCC) flagged potential headwinds to its ability to increase overseas projects abroad in a trading update to the Hong Kong and Shanghai stock exchanges late last week. Photo: AFP

Published: 6:00am, 8 Sep 2020Updated: 6:00am, 8 Sep 2020

Chinese state-owned engineering giant China Communications Construction Company (CCCC) will counter growing uncertainty in the growth of its overseas projects, some of which has been caused by US blacklisting of five of its subsidiaries, by pushing ahead with its Belt and Road Initiative projects.

CCCC flagged potential headwinds to its ability to increase overseas projects abroad in a trading update to the Hong Kong and Shanghai stock exchanges late last week.

And while the company was referring to broader geopolitical risks on its overseas projects, CCCC’s inclusion on the American Entity List raises questions as this is the first time the United States has targeted an active belt and road company, the implications of which could have an impact on China’s wider programme to grow regional trade and infrastructure.

But CCCC maintained the blacklisting of its subsidiaries, including the China Communications Construction Company Dredging Group, two weeks ago would not impact its overall business given their small contribution to the group’s turnover.

China’s focus on belt and road projects has become a key strategy and this is an opportunistic period

CCCC

“Sino-US relations are at its record low since the establishment of diplomatic relations. Due to this intensifying political conflict, the uncertainty surrounding the company’s overseas operations has increased,” CCCC said in a statement.