US sanctions could affect China's Sri Lanka project
A future law could even bar third-country companies from partnering with Chinese companies
The United States’ recent step of putting economic sanctions on 24 Chinese companies involved in building artificial islands in the South China Sea is likely to affect the fate of several of Beijing’s under-construction One Belt, One Road (OBOR) projects including the Port City Colombo project, said a report by The Tribune.
The report quoted sources as saying that some of these Chinese companies are in tie-ups with US firms as subcontractors and equipment suppliers in the Colombo Port City project and it is unlikely that they will get a special waiver.
If this economic sanction becomes law then sources expect the legislation to be well-rounded signaling a future law could even bar third-country companies from partnering with Chinese companies. The sources further revealed that the sanctioned mother company CCCC is the “Huawei of Construction” and this could cripple Chinese construction activity in other countries, according to the report.
Sri Lanka’s involvement with Chinese companies had begun under Mahinda Rajapaksa as President. Rajapaksa has ensured that diplomatic civility has guided India-Sri Lanka ties; however, he has made no move to accommodate Indian interests by opening a port on the northern coast or allocating oil blocks in the common waters separating the two nations, said the report.
The Tribune further quoted sources as saying that if the US sanctions gather pace, other infrastructure projects in Myanmar and Thailand, that cause South Block unease, may also seize-up and could be up for grabs.