US State Department Mentions Sanctions on Chinese Officials and Companies Related to the South China Sea

Deputy Secretary of State Stilwell Mentions "Equivalent to the East India Company" Regarding Chinese State-Owned Enterprises in the South China Sea

David Stilwell, U.S. Department of State Assistant Secretary for East Asian and Pacific Affairs [Image source=Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The United States has once again strongly criticized China's sovereignty claims over the South China Sea, following a similar stance the day before. This time, the pressure has intensified with the mention of possible sanctions against Chinese officials and companies.

David Stilwell, U.S. Assistant Secretary of State for East Asian and Pacific Affairs, said on the 14th (local time) at a South China Sea-related conference hosted by the Center for Strategic and International Studies (CSIS), in response to a question about possible sanctions on China, "Nothing is off the table," adding, "There is room for this (sanctions)." He also described it as "an expression China understands," using the phrase "clear and real action."

Assistant Secretary Stilwell also harshly criticized the activities of Chinese state-owned enterprises' drilling, survey vessels, and fishing boats in the South China Sea area. Regarding the oil company China National Offshore Oil Corporation (CNOOC) and other companies, he pointed out that they function as a "battering ram" designed to threaten other countries, likening "these state-owned enterprises to a modern-day 'East India Company'."

This is interpreted to mean that since China is using state-owned enterprises to assert sovereignty and gain benefits in the South China Sea, sanctions against these companies are being considered.

Assistant Secretary Stilwell also expressed concerns about the "Code of Conduct in the South China Sea," which China has long negotiated with the Association of Southeast Asian Nations (ASEAN). The code was targeted for agreement next year but was postponed due to the COVID-19 pandemic.

Stilwell emphasized, "China's goal to dominate hegemony remains unchanged," adding, "Any code of conduct that would legitimize Beijing's militarization or illegal maritime claims in any way will be unacceptable to many countries."

This aligns with the statement made a day earlier by Secretary of State Mike Pompeo, who declared China's sovereignty claims in the South China Sea completely illegal.

China draws nine dash lines in a U-shape along the South China Sea coast, claiming 90% of the area as its territorial waters, and has built artificial islands which have been militarized, causing conflicts with neighboring countries such as the Philippines, Vietnam, Malaysia, Taiwan, and Brunei.

Assistant Secretary Stilwell also stressed that the U.S. position is "no longer to speak neutrally on this maritime issue." His remarks confirm media assessments from the previous day that the U.S., which had maintained neutrality in the South China Sea sovereignty dispute, is now siding with Southeast Asian countries in conflict with China.

Secretary Pompeo continued his criticism of China on the same day. In a statement, he warned that the preliminary elections to select a unified opposition candidate for the Hong Kong Legislative Council election may have violated the Hong Kong National Security Law (Hong Kong Security Law), a warning issued by Chief Executive Carrie Lam, and stated that the U.S. is seriously concerned.