UPDATE 4-U.S. imposes sanctions on Chinese firm over Cambodia project
*U.S.- China tensions growing in Southeast Asia. WASHINGTON/ PHNOM PENH, Sept 16- The United States has blacklisted a Chinese developer of a port, airport and resort complex in Cambodia, saying it was built on land seized from local people and there were “credible reports” it could be used to host Chinese military assets. U.S. Secretary of State Mike Pompeo said there…
* U.S.-China tensions growing in Southeast Asia
* Pompeo “credible reports” complex could host Chineseassets
* Large airport has raised concerns of possible military use(Adds comment from Chinese embassy in Cambodia, Cambodiangovernment spokesman)
By Daphne Psaledakis and Prak Chan Thul
WASHINGTON/PHNOM PENH, Sept 16 (Reuters) – The United Stateshas blacklisted a Chinese developer of a port, airport andresort complex in Cambodia, saying it was built on land seizedfrom local people and there were “credible reports” it could beused to host Chinese military assets.
Union Development Group Co. Ltd is building the Dara Sakorcomplex in a national park on the Cambodian coast, with a runwaycapable of taking some of the world’s biggest planes.
The Chinese real-estate development company describes it asthe largest regional development project in China’s global Beltand Road infrastructure initiative.
The company and the Cambodian government have repeatedlydenied Western media reports that the project has military aims.
U.S. Secretary of State Mike Pompeo said there were”credible reports” that Dara Sakor “could be used to host(Chinese) military assets”.
“If so, (this) would go against Cambodia’s constitution andcould threaten Indo-Pacific stability, possibly impactingCambodia’s sovereignty and the security of our allies,” he addedin a statement on Tuesday.
The U.S. Treasury Department described the company as aChinese state-owned entity, and said it had at one point falselyregistered as Cambodian-owned to get land for the project, hadforced Cambodians from their land and devastated theenvironment.
China’s embassy in Cambodia condemned the U.S. sanctions.
“It not only undermines legitimate business interests, butis a complete violation of Cambodia’s sovereignty,” it said onits Facebook page.
Union Development Group did not respond to requests forcomment. It is registered in Cambodia as a private limitedcompany. Its website says Union Group was formerly known asTianjin Wanlong Group, a Chinese real estate developer.
REGIONAL TENSION
Southeast Asia has become one front of growing tensionsbetween the United States and China, with the rivals at oddsover Beijing’s territorial claims in the South China Sea andupstream damming of the Mekong River.
The U.S. Treasury Department statement cited Cambodiangovernment spokesman Phay Siphan as having said Dara Sakor couldbe converted to host military assets.
It did not say when he said this. In a 2019 Bloomberg Newsarticle, Phay Siphan said: “Dara Sakor is civilian – there is nobase at all. … It could be converted, yes, but you couldconvert anything.”
Phay Siphan said he had been misquoted by the TreasuryDepartment.
“It’s fabricated information and is unacceptable,” he saidon Facebook, adding that UDG’s project was legal and beneficial.
Cambodia’s government has repeatedly said the country willnot serve as a base for any foreign army. It has become one ofChina’s closest regional allies in recent years.
The U.S. sanctions were imposed under the Global MagnitskyAct, which allows the U.S. government to target human rightsviolators worldwide by freezing assets and prohibiting Americansfrom doing business with them.
The Belt and Road initiative is China’s flagship campaign tobuild infrastructure across Asia, linking it to Europe. Workbegan on the Dara Sakor project in 2008 after Cambodia leased45,000 hectares (111,200 acres) in a national park to theChinese company for 99 years.
The company said it planned to invest $3.8 billion, buildinga resort with residential areas, businesses and industry.(Additional reporting by David Brunnstrom in Washington;Editing by Matthew Tostevin and Emelia Sithole-Matarise)