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US Sanctions Chinese Company Developing Resort in Cambodia

Men Kimseng

   The U.S. Treasury Department has imposed economic sanctions on a
   Chinese company that operates in Cambodia, citing its land seizure and
   displacement of families to make way for a $3.8 billion luxury gambling
   and lifestyle project.

   The Dara Sakor Seashore Resort, developed by the Chinese company Union
   Development Group (UDG) in unspoiled Koh Kong province, includes an
   international airport and a port for cruise ships that "credible
   reports" suggested could be used by the Chinese military.

   The company describes the undertaking as part of [1]Beijing's global
   Belt and Roadinfrastructure initiative, and on Thursday, its parent
   company, Tianjin Union Development Group, told Cambodia's
   government-affiliated Fresh News, the allegations against UDG by the
   U.S. Treasury Department have "ignored the facts on the ground" and
   made up a story.

   The company denied that the facility would be used for military
   purposes, citing numerous statements by Cambodian officials and the
   country's constitutional prohibition on foreign troops on its
   territory.

   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 and could
   threaten Indo-Pacific stability, possibly impacting Cambodia's
   sovereignty and the security of our allies," he added in a statement on
   Tuesday, the same day the Treasury Department announced the sanction.

   The U.S. has raised concerns in the past that the site could be used as
   a military asset housing Chinese naval forces, but [2]Cambodian
   authorities have repeatedly denied it.

   The U.S. sanctioning of the Chinese state-owned entity is pursuant to
   Executive Order (E.O.)'¯13818, which builds upon and implements the
   [3]Global Magnitsky Human Rights Accountability Actto target
   perpetrators of serious human rights abuse and corruption and their
   supporters.

   "UDG-funded activities have forced Cambodians from their land and
   devastated the environment, hurting the livelihoods of local
   communities, all under the guise of converting Cambodia into a regional
   logistics hub and tourist destination," [4]the Treasury Department
   saidTuesday. The Treasury's Office of Foreign Assets Control
   (OFAC)'¯designated UDG as a Chinese state-owned entity.

References

   1. http://silkroadregained.com/
   2. https://www.voanews.com/east-asia-pacific/cambodia-denies-secret-naval-base-agreement-china
   3. https://www.humanrightsfirst.org/sites/default/files/hrf-global-magnitsky-faq.pdf
   4. https://home.treasury.gov/news/press-releases/sm1121

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