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Concerns over China’s giant investment in Cambodia
Concerns over China’s giant investment in Cambodia
14/10/14
The bilateral relations between the Kingdom of Cambodia and the People's Republic of China have
strengthened considerably after the end of the Cambodian-Vietnamese War, during which
China had supported the Khmer Rouge against Vietnam.
Although they do not share a contiguous border, China
has had a historic cultural and commercial relationship with Cambodia. Ethnic
Chinese constitute approximately 3-5% of Cambodia's population or 350,000.
Since 1997, China
began developing closer relations with the regime of Cambodian Prime Minister Hun Sen.
Facing international isolation after the 1997 coup that brought him to power,
Hun Sen cultivated close ties with China,
which opposed efforts by Western countries to impose economic
sanctions on Cambodia.
During the visit of Chinese
Premier Wen Jiabao between April 7-April 8, 2006 both
nations signed several bilateral agreements and a treaty of "Comprehensive
Partnership of Cooperation." China
diversified its aid and investments in Cambodia and promised to provide USD 600 million in loans and grants. China has canceled much of Cambodia's debt
and granted a fresh loan of USD 12.4 million for the construction of the
building housing the Cambodian government's council of ministers and the
restoration of the Angkor Wat temple and heritage site. About USD
200 million has been earmarked as a low-interest loan for the construction of
bridges spanning the Mekong and Tonle Sap rivers. China
has cultivated strong ties with Cambodia,
gaining access to its sea ports that can allow China
to exploit oil reserves in the Gulf of
Tonkin. During the visit, Cambodian Prime Minister Hun Sen described
China as Cambodia's
"most trustworthy friend." Trade between Cambodia and China totaled USD 732 million in
2006. However, Cambodia
has a significant trade deficit of USD 632 million with China as 60% of
products in Cambodian markets are Chinese-made.
China undeniably plays a crucial role in Cambodia’s economic development. China invested
a total of US$9.17 billion between 1994 and 2012. Chinese investment in the
textiles industry has increased Cambodia’s
exports and created employment for thousands of women in rural areas, while
investment in the energy sector, particularly in hydropower development, has
helped reduce Cambodia’s
chronic energy shortages. China
is also a major source of foreign assistance for Cambodia. By 2012, Chinese loans
and grants to Cambodia
reached US$2.7 billion, making it the country’s second-largest donor after Japan. Cambodia has been using China’s
so-called ‘no strings attached’ aid to build roads and bridges, helping to
improve the country’s much needed infrastructure.
The China–Cambodia
relationship has reached new peaks in recent years. China
is now Cambodia’s
largest foreign investor, a major donor of aid and an increasingly important
trading partner. But this growing relationship is also accompanied by renewed
controversies. Behind these impressive numbers lie hidden agendas and serious
social and political implications. Cambodia’s
largest opposition party has expressed concern that China’s investment in the country
is heavily skewed towards exploiting natural resources, wreaking havoc on the
environment. While Chinese investment and aid is much needed for economic
development, China’s
unquestioning approach to how its aid and investment money is distributed and
used has exacerbated corruption, deteriorated good governance and human rights,
and ruined Cambodia’s
resources and natural environment. Human rights activists have often accused
Chinese textile factories of abusing worker’s rights, while China’s hydropower
investments have destroyed protected areas, forest biodiversity and wildlife
habitat.
In return for its
generous financial aid, China
has exerted its influence on Cambodia
to propel its own political interests. Cambodia’s
decision to deport 20 ethnic Uyghur asylum seekers to China upon Beijing’s
request in 2009 is a clear example of this. In another instance, after
receiving millions of dollar in pledges from China
last year, Cambodia
refrained from discussing the South China Sea
disputes during the ASEAN Summit, which was harshly criticised by the
international community and resulted in the failure by ASEAN’s foreign
ministers to issue a joint communiqué for the first time in ASEAN
history. Cambodia has
also been accused of favouring Chinese investment, putting China’s
investment interests above that of other nations. According to a report by the Cambodian Center
for Human Rights, 50 per cent of the land concessions granted since 1994 —
totalling 4.6 million hectares — were given to Chinese companies to invest in
mining, hydropower and agriculture in Cambodia.
To Vietnam, China
has served Cambodia as a
counterweight to the dominating influence of Vietnam. There are concerns that
the government is at risk of losing its autonomy. If it were to rely solely on China, Cambodia
also risks losing face and trust from the international community, and its role
in ASEAN might be marginalised if it continues to put China ahead of
ASEAN./.
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All comments [ 10 ]
We, Vietnam, should also concerned about that.
China began developing closer relations with the regime of Cambodian Prime Minister Hun Sen, who had actually been a pro-Vietnamese leader and a defector from the Khmer Rouge during Vietnam's occupation of Cambodia.
China's close ties with Cambodia have also served to gain leverage against Vietnamese influence in the region
Being influenced in economics will lead to being influenced in politics and lose sovereignty.
China has also cultivated military ties. In the aftermath of the 1997 coup, China provided USD 2.8 million in military aid and has since supplied wide range of military equipment,[5] training of military and police cadre and naval vessels to combat drug trafficking and piracy.
Instead of chosing to be a Vietnam's friend, Cambodia has chosen to be China's servant
Cambodian laborers work the soil in this remote area under the watch of Chinese bosses and guards whom they cannot understand and live in bamboo shacks painted with Chinese characters they don’t comprehend.
The China National Overseas Oil Corporation (CNOOC) have sought to launch projects for oil exploration and exploiting of Cambodia's hydrocarbon reserves.
That's a vivid lesson for Vietnam, we should be independent from China's economy and culture.
Cambodia is so ungrateful, they don't remember in the past who save them from Khmer Rouge's genocide. Vietnam should consider the relationship with Cambodia in the future.
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