The Civil.ge article “Chinese Companies in Georgia: Sanctions, Delays, and Concerns” references Civic IDEA and its China Watch reports showcasing the misconduct of notorious Chinese companies operating in Georgia’s infrastructure sector, shady dealings with the Georgian business and political elites and threats to national security.
Below, we offer a brief excerpt from the article mentioning that.
“Civic Idea found several red flags:
China Road and Bridge Corporation – The World Bank has sanctioned the China Road and Bridge Corporation for fraudulent practices in connection with the Philippines’ National Road Improvement and Management Program (NRIMP 1). China State Construction Engineering Corporation – The World Bank blacklisted China State Construction Engineering Corporation Ltd. in the Philippines for its involvement in collusive practices and a corruption scandal involving the Philippine NRIMP 1 Program. In 2020, the Trump administration accused CSCEC of cyber espionage and banned U.S.-registered companies from becoming shareholders in CSCEC. HUNAN ROAD AND BRIDGE CONSTRUCTION GROUP CO LTD – Due to their poor construction, the 328-meter Tuojiang Bridge in China collapsed in 2009. As a result, 64 people died, 22 were injured, and the economic loss reached 39.747 million yuan (about 6 million U.S. dollars). 20 local government officials and HNRB board members were sentenced to 19 years in prison in China for bribery, malfeasance, negligence, and racketeering. In Georgia, the workers complained about poor working conditions and went on strike several times. There were deadly incidents, too, notably in June and August 2023.
Other concerning companies
The Civic Idea also points to other companies that are not part of the large projects, but whose active involvement in Georgia, they say, should be the cause of concern:
Nuctech Company Limited (serves the borders of Georgia with a scanning system) – In 2009, the European Union accused Nuctech Company Ltd. of dumping and imposed anti-dumping duties on imports of Nuctech scanning systems. In the United States, the Transportation Security Administration (TSA) initially banned Nuctech’s equipment in 2014 and, based on its international experience, presented a detailed review of the company’s misdeeds in a secret document, which led to restrictions on its services by various countries. One of the last was Lithuania, whose authorities officially decided in 2021 to ban the supply of Nuctech equipment to three international airports in Lithuania.
CEFC China Energy Co – Ye Jianming, former head of CEFC China Energy Co, was charged in the US in 2017 with several crimes, including bribery. In 2018, the Chinese state investment company took control of CEFC’s foreign assets after Jianming’s disappearance. Despite CEFC officially declaring bankruptcy in 2020, Georgia’s government and courts, allegedly influenced by individuals tied to the businessman Ivane Chkhartishvili and Bidzina Ivanishvili, have not acknowledged the bankruptcy documents. The Poti Free Industrial Zone, owned 75% by CEFC, remains in the company’s possession.”
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