The Next Step in China—Cambodia Cooperation

Wang Fang

Chinas economic exchange with Cambodia can be traced back more than 1，000 years alongside the emergence of the ancient Maritime Silk Road. Today， implementation of the Belt and Road Initiative has boosted exchange and cooperation between the two countries. China has become Cambodias largest trading partner， largest source of foreign direct investment and largest source of exports. A series of China-funded projects including the Sihanoukville Special Economic Zone （SSEZ）， China-Cambodia Friendship Stung Treng Bridge spanning the Mekong River， National Highway 6 and construction of a new international airport in Siem Reap province are rumbling through the Southeast Asian country.

Booming bilateral cooperation can be attributed to the countries common aspirations for development， their mutually complementary traits and the China-ASEAN Expo （CAEXPO）. Launched in 2004， the CAEXPO has been held annually in Nanning in Chinas Guangxi Zhuang Autonomous Region. It has contributed heavily to promoting friendly cooperation between China and ASEAN countries.

Platform for Cooperation

One of the most significant boosters of the CAEXPO has been Cambodian Prime Minister Hun Sen， who has participated in the event ten times， more than any other state leader from an ASEAN country. During a media interview， he noted that with the number of participating Cambodian businesses increasing each year， he hopes that CAEXPO will help more Cambodian products and brands go global.

“CAEXPO provides opportunity for communication and consultation between government officials and entrepreneurs from both China and ASEAN countries，” he remarked. “It also serves as an important platform for enhancing bilateral and multilateral cooperation and creating business opportunities for participating countries.”

At the opening ceremony of the 14th CAEXPO， Hun Sen complimented the growth of the event， which he believes is conducive to the promotion of regional development and complies with the positive development trends of China-ASEAN cooperation.

The prime ministers support has made CAEXPO an important engine driving China-Cambodia cooperation and helped it set a great example for cooperation between China and various ASEAN member states. Across all the past 14 CAEXPO meetings， Cambodia has sent a total of 856 enterprises to display products at 1，560 booths， presented 18 special promotions and signed a number of agreements on key projects in multiple fields.

Through the CAEXPO， Cambodian specialty commodities such as fragrant rice， furniture， textile and garments joined Cambodian signature brands such as Golden Rice and Angkor Beer in finding their way into the Chinese market， through which they become ready to tap the international market. Also， many Chinese enterprises have established a presence in the Cambodian market.

Remarkable fruits have been achieved in bilateral cooperation in areas of electricity， agriculture， tourism， infrastructure and development of special economic zones， making positive contributions to Cambodias economic and social development and rising standards of living. Statistics show that trade volume between China and Cambodia was valued at US$5.79 billion in 2017， up 21.7 percent over the previous year， surpassing the US$5 billion target set by leaders of the two countries. By the end of 2017， cumulative Chinese investment in Cambodia approximated US$8 billion， making China the largest source of foreign investment for Cambodia for many consecutive years.

Next Installment Coming Soon

The 15th CAEXPO is scheduled to be held from September 12 to 15， attracting leaders of China and ASEAN members states alike. “Cambodia is privileged to be named this years Country of Honor， and with it we hope to do more and play a greater role，” asserted Hun Sen during an April meeting with Chen Wu， chairman of Guangxi Zhuang Autonomous Region， affirming that he would head the Cambodian delegation to the 15th CAEXPO.

In late March and early April， CAEXPO Cambodia Exhibition 2018 was held in Phnom Penh， kicking off the Country of Honor series events leading up to the 15th CAEXPO. This was CAEXPOs largest tour exhibition in an ASEAN country and the first tour exhibition in Cambodia sponsored by the CAEXPO Secretariat. As part of the prelude to the Country of Honor events， the Cambodia exhibition featured diverse economic and trade activities focused on exhibiting products and technical services in Chinese competitive industries which are in high demand in Cambodia such as machinery and equipment， electronics and electrical appliances， agricultural products， light industry products， building materials and environmentally-friendly products.

“This is Cambodias second chance to serve as the Country of Honor of the CAEXPO， which has attracted enthusiastic participation from across Cambodia，” noted Xiong Bo， Chinese Ambassador to Cambodia. “We hope that through this platform， Cambodia can further enhance exchange and cooperation with China and other ASEAN countries.”

Chhuon Dara， Secretary of State of Ministry of Commerce of Cambodia， remarked that Cambodia attaches great importance to attracting foreign investment and has created many conveniences for foreign investors. He stressed that the Cambodia exhibition was intended to strengthen economic cooperation with China and encourage Chinese enterprises to seek business partners and invest in startups in Cambodia.

The year 2018 marks the 60th anniversary of the establishment of China-Cambodia diplomatic ties， the 15th anniversary of the China-ASEAN Strategic Partnership， and also the 15th anniversary of the CAEXPO. Seizing these opportunities， this years CAEXPO is themed “Jointly Building the 21st Century Maritime Silk Road， Forging a China-ASEAN Community of Innovation，” with aims to deepen cooperation in trade and innovation， elevate construction of the 21st Century Maritime Silk Road from consensus to action and promote the formation of a China-ASEAN community with connected concepts， common prosperity and shared responsibilities.

According to Yang Yanyan， vice secretary-general of the CAEXPO Secretariat， this year， the Cambodian Pavilion will consist of 145 booths and feature exhibits covering fields of agriculture， infrastructure， medium and small enterprises， education， culture and tourism.