China Communications Construction Company

China Communications Construction Company, Ltd.

Company type	Public, state-owned enterprise
Industry	Engineering and construction
Predecessor	China Road and Bridge Corporation, China Harbour Engineering Company
Founded	2005
Headquarters	Beijing , China
Area served	Worldwide
Products	Infrastructure projects including highways, bridges, tunnels, railways, subways, airports, offshore oil platforms, seaports
Owner	State-owned Assets Supervision and Administration Commission (63.8%)

China Communications Construction Company, Ltd. (CCCC) is a predominantly state-owned Chinese multinational corporation publicly traded and engaged in engineering and construction. The company specializes in the planning, building, and management of infrastructure projects including highways, bridges, tunnels, railways—particularly high-speed rail—subways, airports, offshore oil platforms, and seaports. CCCC has been a key participant in various projects under the Belt and Road Initiative. It was ranked on the 2016 Fortune Global 500 list.

History

The roots of CCCC trace back to the Qing Dynasty with the founding of the Junpu Engineering Bureau in 1905. The current entity was established in 2005 through the consolidation of China Road and Bridge Corporation (CRBC), which focused on land transportation infrastructure, and China Harbour Engineering Company (CHEC), which specialized in maritime infrastructure. The firm made its debut on the Hong Kong Stock Exchange in 2006 and later on the Shanghai Stock Exchange in 2012.

Misconduct

Beginning in the mid-2000s, CCCC encountered accusations involving fraud and corruption across several countries including Bangladesh, Equatorial Guinea, Malaysia, and the Philippines. These allegations led to sanctions such as debarment imposed by both the World Bank and the Bangladeshi government.

Bangladesh

In early 2018, China Harbour Engineering Company, a subsidiary of CCCC, was banned due to an attempted bribery incident linked to a contract for expanding the Dhaka-Sylhet Highway. Bangladesh’s Finance Minister AMA Muhith reported that following an unsolicited bribe offer from the contractor, the government returned the funds to the Chinese embassy, blacklisted the company, and suspended the project.

Equatorial Guinea

A contract awarded in 2009 for highway construction resulted in accusations by the U.S. Department of Justice that CCCC had paid US$19 million to Teodorin Obiang, Vice President of Equatorial Guinea. Teodorin resolved the matter by forfeiting more than US$30 million in assets held within the United States.

Malaysia

CCCC was implicated in financial schemes associated with former Prime Minister Najib Razak and his advisor Low Taek Jho aimed at addressing debts related to 1MDB. The Malaysian government engaged CCCC for the RM60 billion East Coast Railway project. Documentation revealed that CCCC was required to purchase shares in companies connected to Low, including acquiring a 70% stake in Putrajaya Perdana Bhd for US$244 million and 90% ownership of Loh & Loh for US$71 million. Malaysia Rail Link Sdn Bhd, responsible for the project, denied these claims.

During Najib’s 1MDB corruption trial in September 2019, his aide Amhari Effendi Nazaruddin testified about a June 2016 trip to Beijing where infrastructure projects were discussed as potential solutions for settling debts related to 1MDB and SRC International. Amhari voiced concerns regarding involvement in attempts to conceal losses from 1MDB funds and debt repayments.

In March 2023, Kuwait convicted Jho Low along with others for money laundering connected to funds originating from CCCC transferred through Hong Kong subsidiaries to Kuwaiti entities. These monies were sourced from loans provided by Export-Import Bank of China used to finance the East Coast Railway.

Philippines

In 2009, both CCCC and CRBC were debarred by the World Bank Group until 2017 due to fraudulent conduct during Phase 1 of the Philippines National Roads Improvement and Management Project. Alongside five other firms, they were found guilty of colluding by submitting non-competitive bids with inflated prices.

Russia

CCCC has undertaken significant initiatives aimed at modernizing Russia's shipbuilding sector and enhancing port facilities, including projects that facilitate the advancement of the Northern Sea Route.

U.S. sanctions

In August 2020, the U.S. Department of Commerce added multiple CCCC subsidiaries to the Bureau of Industry and Security’s Entity List due to their involvement in militarizing artificial islands located in the South China Sea. Additionally, the U.S. Department of Defense designated CCCC as a "Communist Chinese military company" operating within the United States. By November 2020, an executive order banned American investments in firms associated with the Chinese military, encompassing CCCC. Subsequently, in December 2020, CCCC itself was placed on the U.S. Department of Commerce’s Entity List, limiting its access to U.S. technology and markets.

Ownership

CCCC is recognized as a blue chip stock included in the CSI 300 Index. As of 2016, the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) retains a controlling stake of 63.8%. Other notable shareholders include entities or funds managed by Merrill Lynch, BlackRock, and JPMorgan Chase.

Operations

CCCC conducts its business through various subsidiaries such as China Road and Bridge Corporation (CRBD), China Harbour Engineering Company (CHED), and the Australian infrastructure specialist John Holland Group. Its portfolio also includes Friede & Goldman, which focuses on offshore vessel engineering for oil and gas industries, and Concremat Engenharia e Tecnologia S.A., a Brazilian engineering consulting firm.

As a key participant in the Belt and Road Initiative, CCCC executes dredging operations in contested regions of the South China Sea, constructs highways in Xinjiang, and develops naval logistics infrastructure at Gwadar Port. The subsidiary China Harbour Engineering Company spearheads infrastructure projects in Sri Lanka, including the Hambantota International Port, while CCCC is also responsible for advancing the Port City Colombo development.

See also

• Infrastructure-Based Development
• Asian Infrastructure Investment Bank