The U.S. Treasury Department on Tuesday (Sept. 15) imposed economic sanctions on China’s UDG, which operates in Cambodia, for land grabbing and displacement of local families for the $3.8 billion Dara Sakor luxury gambling and leisure project.
Secretary Pompeo said in a statement the day the U.S. Treasury Department announced the sanctions against UDG: “If true, this would violate Cambodia’s constitution and potentially threaten stability in the Indo-Pacific region, as well as affect Cambodia’s sovereignty and the security of our allies.”
Pompeo also said there are “credible reports” that the Seven Seas project “could be used to store (Chinese) military supplies.”
The U.S. has expressed concerns in the past that the site could be used to store Chinese naval materiel, but Cambodian authorities have repeatedly denied that it could be used. The U.S. sanctions against China’s Youlian are based on Presidential Executive Order 13818 (E.O. 13818), which established and implemented the Global Magnitsky Human Rights Accountability Act to target perpetrators and supporters of serious human rights abuses and corruption.
According to the U.S., China Youlian Group operates as a Cambodian entity with the support of Kun Kim, a close ally of Cambodian Prime Minister Hun Sen. According to reports, Kun Kim used his military power to seize land to meet Ulian’s demand for land for resort development, a demand that resulted in the displacement of local people.
In a statement to Fresh News, China’s Ullian Group defended Gunn Kim, claiming, “During the relocation, Ullian Group worked with a multisectoral committee, respected and complied with Cambodian laws and lease terms, and never committed any illegal acts through General Gunn Kim.”
The U.S. sanctioned Gunn Kim, his wife and two children on December 9, 2019, for “corruption.
Secretary Pompeo also tweeted shortly after the Commerce Department announced the sanctions, saying, “We will not tolerate these actions against innocent people and will always stand with the Cambodian people.”
The Chinese Embassy in Phnom Penh said in a statement on Facebook on Wednesday (September 16), “The sanctions imposed by the United States invoking its domestic law are a blatant act of hegemony. It completely ignores the facts and the allegations are baseless. The U.S. suppression of a Chinese company’s legitimate investment in Cambodia will not only harm the company’s legitimate rights and interests, but also trample on Cambodia’s sovereignty.”
The Chinese Embassy expressed “its strong opposition to and condemnation of the U.S. sanctions. The embassy further urges the U.S. side to correct its misconduct and withdraw the so-called sanctions.”
Unilink’s plans have raised eyebrows since 2008, when it secured a 99-year concession from the Cambodian government for 36,000 hectares of land, an area that covers 20 percent of the country’s coastline. Development plans include the Seven Seas International Airport, which will have the longest runway in Cambodia favored by fighter pilots, and a yacht basin big enough to accommodate naval vessels.
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