China in Cambodia’s economy: Beneficial or dangerous partnership?

 
PIIS032150750014645-1-1
DOI10.31857/S032150750014645-1
Publication type Article
Status Published
Authors
Occupation: Research Fellow, Institute of Far Eastern Studies, Russian Academy of Sciences (IFES RAS)
Affiliation: Institute of Far Eastern Studies, Russian Academy of Sciences (IFES RAS)
Address: Russian Federation, Moscow
Journal nameAsia and Africa Today
EditionIssue 4
Pages41-47
Abstract

China has a strong influence on Cambodia, which is one of China's oldest and closest allies. Relations between the two countries knew periods of close friendship and open confrontation. However, at present, the relationship between them is closer and stronger than ever.

China's presence in Cambodia is not new, the degree of its current involvement in Cambodian politics and economic development overwhelms. China is currently Cambodia's main foreign investor, major donor and important trading partner. China undeniably plays an important role in the development of Cambodia. However, its dominance is surrounded by a number of contradictions.

Chinese investments have significantly contributed to Cambodia's economic growth, but the benefits of Chinese money have not been widely shared with the local population And yet, China's direct investment to Cambodia is mainly concentrated on the production of low value-added goods and don’t contribute to the productivity growth. At the same time, despite regarding China as an important trading partner, trade with it is extremely unbalanced and led to the trade deficit. It creates certain risks of Cambodia falling into the Chinese “debt trap”. Moreover, all Chinese aid and loans that go to Cambodia are often criticized for the lack of transparency, accountability and good governance.

The study of the main aspects of China's economic influence on Cambodia, which is gaining more and more influence, is increasingly relevant in recent years.

KeywordsCambodia, China, Chinese investments, international trade, trade partners, official development assistance (ODA), Chinese “debt trap”
Received15.01.2020
Publication date28.04.2021
Number of characters23099
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