Jump to content

China Communications Construction Company

From Wikipedia, the free encyclopedia
China Communications Construction
Native name
中国交通建设 (Chinese)
Company typeState-owned enterprise
IndustryEngineering and Construction
Founded2005; 19 years ago (2005)
Headquarters85 De Sheng Men Wai Street, Xicheng District,
Beijing
,
People's Republic of China
Area served
Worldwide
Key people
  • Liu Qitao, Chairman
  • Song HaiLiang, President
  • Peng Bihong, Chief Financial Officer
RevenueUS$ 136.7 billion (2023)[1]
US$ 1.6 billion (2023)[1]
Total assetsUS$ 361.4 billion (2023)[1]
OwnerGovernment of China (63.8%)
Number of employees
219,034 (2023)[1]
SubsidiariesChina Road and Bridge Corporation
China Harbour Engineering Company
John Holland Group
Chinese name
Simplified Chinese中国交通建设股份有限公司
Traditional Chinese中國交通建設股份有限公司
Transcriptions
Standard Mandarin
Hanyu PinyinZhōngguó Jiāotōng Jiànshè Gǔfèn Yǒuxiàn Gōngsī
China Communications Construction
Simplified Chinese中国交通建设
Traditional Chinese中國交通建設
Transcriptions
Standard Mandarin
Hanyu PinyinZhōngguó Jiāotōng Jiànshè
CCCC
Simplified Chinese中交建
Traditional Chinese中交建
Transcriptions
Standard Mandarin
Hanyu PinyinZhōngjiāojiàn
Websiteen.ccccltd.cn Edit this at Wikidata

China Communications Construction Company, Ltd. (CCCC) is a Chinese majority state-owned, publicly traded, multinational engineering and construction company primarily engaged in the design, construction, and operation of infrastructure assets, including highways, skyways, bridges, tunnels, railways (especially high-speed rail), subways, airports, oil platforms, and marine ports. CCCC has been a contractor for numerous Belt and Road Initiative projects.[2][3] It is included in the Fortune Global 500 list for 2016.[4]

History

[edit]

CCCC's predecessors can be traced back to the Qing Dynasty, when the Junpu Engineering Bureau was established in 1905.[5] The company was officially formed in 2005 by the merger of China Road and Bridge Corporation (CRBC) and China Harbour Engineering Company (CHEC), which focus on transportation infrastructure and marine infrastructure, respectively. In 2006, the company listed shares on the Hong Kong Stock Exchange, followed by a listing on the Shanghai Stock Exchange in 2012.[6]

Misconduct

[edit]

Since the mid-2000s, CCCC has been implicated in misconduct including fraud and corruption in Bangladesh, Equatorial Guinea, Malaysia, and the Philippines. Penalties included debarment by the World Bank and the Bangladesh government.[3][7]

Bangladesh

[edit]

In early 2018, CCCC subsidiary, China Harbour Engineering Company, was debarred for attempted bribery of a senior government official in relation to a contract for the expansion of the Dhaka-Sylhet Highway. Finance Minister AMA Muhith said: “[The expansion of] Dhaka-Sylhet Highway, somehow, we had to drop it. Because, the party who got the contract, they came up, in the very beginning, with offer of bribe, open bribe.

So, we gave the money, which they gave to some of our officials, back to the Chinese embassy and naturally blacklisted the company.”[8][9][10][11]

Equatorial Guinea

[edit]

An investigation by the U.S. Department of Justice alleged that, in 2009, CCCC paid US$19 million to Teodorin Obiang, Vice President of Equatorial Guinea, in relation to a contract for a highway.[12] Teodorin Obiang settled the case, agreeing to forfeit over US$30 million worth of U.S. assets.[13]

Malaysia

[edit]

CCCC has been implicated in schemes devised by ex-Prime Minister Najib Razak and advisor Low Taek Jho to bail out debts related to 1MDB. The Malaysian government agreed with CCCC to construct an East Coast Railway line for RM60 billion. Government documents revealed that the contract required CCCC to buy shares of companies related to Low, specifically, 70 per cent of Putrajaya Perdana Bhd for US$244 million (RM957 million) and 90 per cent of Loh & Loh for US$71 million (RM283 million).[14][15] However, these allegations were denied by Malaysia Rail Link Sdn Bhd, the owner of the railway project.[16]

Yet, in September 2019, during Najib's trial for corruption in relation to 1MDB, his previous assistant, Amhari Effendi Nazaruddin, testified that he traveled to Beijing China in June 2016 to discuss proposals for infrastructure projects that would help to pay off the debts of 1MDB and its former unit, SRC International.[17][18] The briefing points for the Beijing meeting stressed that "while simultaneously completely resolving 1MDB and SRC debts".[17][19] Amhari testified to his unease about the Beijing mission, "I was worried about being involved directly in Najib and Low Taek Jho’s plan to cover up the loss of 1MDB funds and the repayment of International Petroleum Investment Co (IPIC) debts or the preparation of political funds”.[20]

In March 2023, a court in Kuwait convicted Jho Low and others of money laundering. Trial documents revealed the flow of funds from CCCC through two Hong Kong subsidiaries, Multi Strategic Investment Limited and True Dragon Properties Limited, to Kuwait entities. The funds were proceeds of loans by the Export-Import Bank of China to finance the East Coast Railway.[21][22]

Philippines

[edit]

In 2009, the World Bank Group debarred CCCC and CRBC until 2017 for fraudulent practices under Phase 1 of the Philippines National Roads Improvement and Management Project.[3][7][23] Together with five other companies, CCCC and CRBC had colluded to enter non-competitive, artificially high bid prices.[24]

U.S. sanctions

[edit]
Further information: United States sanctions against China and Military-civil fusion

In August 2020, the United States Department of Commerce placed several CCCC subsidiaries on the Bureau of Industry and Security's Entity List for their construction work to militarize artificial islands in the South China Sea.[25][26][27] The same month, the United States Department of Defense released the names of additional “Communist Chinese military companies” operating directly or indirectly in the United States. CCCC was included on the list.[28][29] In November 2020, Donald Trump issued an executive order prohibiting any American company or individuals from owning shares in companies, including CCCC, that the U.S. Department of Defense has listed as having links to the People's Liberation Army.[30][31] In December 2020, the United States Department of Commerce added CCCC itself to the Entity List.[32]

Corporate affairs

[edit]

Ownership

[edit]

CCCC is a "blue chip" stock (part of the CSI 300 Index). State-owned Assets Supervision and Administration Commission of the State Council (SASAC) holds 63.8% of the company's shares.[33] Other shareholders include multiple affiliates of (or funds managed by) Merrill Lynch, BlackRock and JPMorgan Chase.[33]

Operations

[edit]
Further information: China Road and Bridge Corporation

The company operates through various subsidiaries, including CRBD and CHED, John Holland Group, an Australia-based construction company focused on infrastructure, Friede & Goldman, headquartered in Houston, which engineers offshore vessels for the oil and gas industry, and Concremat Engenharia e Tecnologia S.A., an engineering and infrastructure consultancy based in Brasil.[34]

CCCC is a major contractor in the Belt and Road Initiative.[2][3] CCCC is involved in dredging projects in disputed areas in the South China Sea, highway-building in Xinjiang, and building naval logistics installations at Gwadar Port.[35][36][37][38]

CCCC's subsidiary China Harbour Engineering Company is the leading infrastructure developer in Sri Lanka and is the principal contractor for the development of Hambantota International Port.[39]: 94  CCCC itself began a major project in Sri Lanka, Port City Colombo.[39]

See also

[edit]

References

[edit]
  1. ^ a b c d "China Communications Construction". Fortune Global 500. Fortune. Retrieved 2024-08-24.
  2. ^ a b Prasso, Sheridan (September 19, 2018). "A Chinese Company Reshaping the World Leaves a Troubled Trail: CCCC, Belt and Road's biggest builder, is besieged by allegations of fraud, corruption, and environmental damage". Bloomberg Businessweek. Archived from the original on June 1, 2020. Retrieved July 15, 2020.
  3. ^ a b c d Roy Chaudhury, Dipanjan (August 23, 2019). "World Bank bans Chinese companies again for financial crimes". The Economic Times. Archived from the original on August 23, 2019. Retrieved July 15, 2020.
  4. ^ "Global 500". Fortune. Archived from the original on 2018-04-13. Retrieved 2018-04-12.
  5. ^ Alon, Ilan (2010). A Guide to the Top 100 Companies in China. World Scientific. ISBN 978-981-4291-46-0.
  6. ^ "Investor Relations: Company Background". en.ccccltd.cn. Archived from the original on 9 July 2023. Retrieved 9 July 2023.
  7. ^ a b "World Bank Applies 2009 Debarment to China Communications Construction Company Limited for Fraud in Philippines Roads Project". World Bank. July 29, 2011. Archived from the original on June 19, 2020. Retrieved 2020-07-15.
  8. ^ "Bangladesh blacklists China Harbor Engineering Co. for bribery: Report | Daily FT". www.ft.lk. Archived from the original on 2021-05-02. Retrieved 2020-12-02.
  9. ^ "No job for China Harbour in future". The Daily Star. 2018-01-17. Retrieved 2020-12-02.
  10. ^ "Sheikh Hasina: China, Bangladesh road project hits bribe bump; may slow down Beijing's connectivity plans". The Economic Times. Archived from the original on 2022-01-13. Retrieved 2020-12-02.
  11. ^ Hartman, Leigh (2020-09-10). "China's construction companies sow chaos worldwide". ShareAmerica. Retrieved 2020-10-13.
  12. ^ "A Chinese Company Reshaping the World Leaves a Troubled Trail". Bloomberg.com. 2018-09-19. Archived from the original on 2020-06-01. Retrieved 2020-10-13.
  13. ^ "Office of Public Affairs | Second Vice President of Equatorial Guinea Agrees to Relinquish More Than $30 Million of Assets Purchased with Corruption Proceeds | United States Department of Justice". www.justice.gov. 2014-10-10. Archived from the original on 2023-04-26. Retrieved 2023-07-10.
  14. ^ "Cover Story: Jho Low's handiwork from Putrajaya Perdana to SRC to 'red files'". The Edge Malaysia. Archived from the original on 2023-07-09. Retrieved 2023-07-09.
  15. ^ "China's largest builder finds itself in a scandal with Malaysian rail". South China Morning Post. 2018-06-12. Archived from the original on 2023-07-09. Retrieved 2023-07-09.
  16. ^ Riduan, Hidir (10 June 2018). "MRL refutes claim that ECRL project involves buyout of stakes in two property firms". New Straits Times. Archived from the original on 4 February 2021. Retrieved 9 July 2023.
  17. ^ a b "Malaysia had plan to use Chinese money to bail out 1MDB, court hears". Reuters. 2019-09-04. Archived from the original on 2023-07-09. Retrieved 2023-07-09.
  18. ^ "1MDB probe shines uncomfortable light on China's Belt and Road". Nikkei Asia. Archived from the original on 2023-07-09. Retrieved 2023-07-09.
  19. ^ "Najib offered projects to China for help to resolve 1MDB debt: former aide". South China Morning Post. 2019-09-04. Archived from the original on 2023-07-09. Retrieved 2023-07-09.
  20. ^ "ECRL, pipeline projects offered to China to bail out 1MDB". The Edge Malaysia. Archived from the original on 2023-07-09. Retrieved 2023-07-09.
  21. ^ "1MDB scandal: Mega projects signed with China, with funds laundered in Kuwait, says court". The Edge Malaysia. Archived from the original on 2023-07-11. Retrieved 2023-07-11.
  22. ^ "How Najib Framed His 1MDB Cover Up Scheme At The Highest Levels In China". Sarawak Report. Archived from the original on 2024-08-19. Retrieved 2023-07-27.
  23. ^ "World Bank Applies 2009 Debarment to China Communications Construction Company Limited for Fraud in Philippines Roads Project". World Bank. Archived from the original on 2020-06-19. Retrieved 2023-07-09.
  24. ^ Sexton, John; Jing, Zhou (15 January 2009). "Chinese Construction Giants barred by World Bank". China.Org.Cn. Archived from the original on 19 August 2024. Retrieved 9 July 2023.
  25. ^ Long, Drake (August 26, 2020). "US Sanctions Chinese Companies Over South China Sea Island-Building". Radio Free Asia. Archived from the original on August 28, 2020. Retrieved August 26, 2020.
  26. ^ O’Keeffe, Kate (2020-08-26). "U.S. Sanctions Chinese Firms and Executives Active in Contested South China Sea". Wall Street Journal. ISSN 0099-9660. Archived from the original on 2020-08-26. Retrieved 2020-08-26.
  27. ^ "Commerce Department Adds 24 Chinese Companies to the Entity List for Helping Build Military Islands in the South China Sea". U.S. Department of Commerce. 2020-08-26. Archived from the original on 2020-08-26. Retrieved 2020-08-26.
  28. ^ "DOD Releases List of Additional Companies, in Accordance with Section 1237 of FY19 NDAA". U.S. Department of Defense. August 28, 2020. Archived from the original on 30 August 2020. Retrieved 30 August 2020.
  29. ^ "Qualifying Entities Prepared in Response to Section 1237 of the National Defense Authorization Act for Fiscal Year 1999 (PUBLIC LAW 105–261)" (PDF). U.S. Department of Defense. August 28, 2020. Archived (PDF) from the original on 28 August 2020. Retrieved 30 August 2020.
  30. ^ Chen, Shawna (November 12, 2020). "Trump bans Americans from investing in 31 companies with links to Chinese military". Axios. Archived from the original on October 28, 2021. Retrieved November 12, 2020.
  31. ^ Pamuk, Humeyra; Alper, Alexandra; Ali, Idrees (2020-11-12). "Trump bans U.S. investments in firms linked to Chinese military". Reuters. Archived from the original on 2021-10-28. Retrieved 2020-11-12.
  32. ^ "U.S. Imposes New Sanctions on People's Republic of China Actors Linked to Malign Activities". United States Department of State. 2020-12-18. Archived from the original on 2020-12-18. Retrieved 2020-12-18.
  33. ^ a b China Communications Construction Co. Ltd. Annual Report 2016. p. 57.
  34. ^ "China Communications Construction Company Ltd, Annual Report 2022" (PDF). Archived (PDF) from the original on 10 July 2023. Retrieved 10 July 2023.
  35. ^ Long, Drake (14 July 2020). "Senior US Official Hints at Sanctions on Chinese Firms in South China Sea". Radio Free Asia. Archived from the original on 15 July 2020. Retrieved 15 July 2020.
  36. ^ "Construction of highway running through Taklimakan Desert enters final rush in NW China's Xinjiang". Xinhua News Agency. May 19, 2020. Archived from the original on 2020-08-23. Retrieved 2020-07-16.
  37. ^ "Work progressing on possible Chinese naval base in Pakistan?". The Week. June 3, 2020. Archived from the original on July 1, 2020. Retrieved July 15, 2020.
  38. ^ "DOD Releases List of Additional Companies, in Accordance with Section 1237 of FY19 NDAA". U.S. Department of Defense. 2020-08-28. Archived from the original on 2020-08-28. Retrieved 2020-08-29.
  39. ^ a b Chen, Muyang (2024). The Latecomer's Rise: Policy Banks and the Globalization of China's Development Finance. Ithaca and London: Cornell University Press. ISBN 9781501775857.
[edit]
Retrieved from "http://en.wiki.x.io/w/index.php?title=China_Communications_Construction_Company&oldid=1242183596"