Asean
Chinese investment and aid in Cambodia a controversial affair
Author: Heng Pheakdey, EISD
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.
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.
But behind these impressive numbers lie hidden agendas and serious social and political implications. 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.
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.
There is no doubt that Cambodia needs China’s assistance to further its economic development. Likewise, China sees Cambodia as an important ally for exercising greater influence in Southeast Asia and counterbalancing the United States. Chinese Ambassador to Cambodia Pan Guangxue recently said that the positive relationship China and Cambodia have built over the years serves as a role model of friendship between countries of different social systems. He is convinced that, with the careful guidance of its leaders and the efforts of its people, China and Cambodia can further deepen their mutual trust for one another and improve cooperation, so as to develop the relationship to a greater level.
To ensure this long-lasting relationship is mutually beneficial, the two nations must work together to improve transparency, promote participatory and inclusive development by involving all relevant stakeholders, and minimise environmental degradation. Cambodia must strengthen its institutions, implement policies that encourage responsible investment and link aid to poverty reduction. China needs to rebuild its image as a good neighbour and international citizen — one that is accountable for its foreign investment and promotes sustainable development.
Heng Pheakdey is Founding Director of Enrich Institute for Sustainable Development.
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Chinese investment and aid in Cambodia a controversial affair
Asean
Deadly Floods and Landslides Strike Indonesia and Thailand – Vietnam Plus
At least seven people were killed, two others were injured and some were likely to be missing after flash floods and landslides hit the Indonesian eastern province of Maluku on the morning of August 25, according to the locality’s disaster management and mitigation office.
Heavy rainfall, which began on August 24, has triggered the disasters in Ternate city. Many local residents are in urgent need of support, authorities said.
Soldiers, police, local search and rescue personnel, disaster management staff, and volunteers are all involved in the ongoing rescue efforts, which include evacuating those trapped by the landslides and recovering materials from homes swept away by the floods.
Meanwhile in Thailand, local authorities reported that the death toll from a landslide in the popular resort province of Phuket on August 23 has risen to 13, including a Russian couple.
Source : Floods, landslides kill many in Indonesia, Thailand – Vietnam Plus
Asean
Tug of War in Southeast Asia: Can ASEAN-China Dialogue Shift the Scales Toward Peace? – An Analysis
The ASEAN-China dialogue is vital for regional stability, addressing economic cooperation and security challenges, particularly in the South China Sea, amidst significant geopolitical complexities and ongoing territorial disputes.
ASEAN-China Dialogue: A Path Towards Cooperation
The ASEAN-China dialogue plays a pivotal role in Southeast Asia’s diplomacy, fostering economic collaboration while addressing security challenges. Despite advances, particularly in managing tensions in the South China Sea, significant barriers remain to achieving lasting peace and stability in the region. ASEAN’s capacity to maintain its unity and centrality is crucial amidst complex power dynamics involving China and other global players.
Navigating Tensions and Economic Relations
A pressing concern within this dialogue is the South China Sea territorial disputes, which involve multiple ASEAN states and China. The militarization of the area raises alarm among regional stakeholders, necessitating urgent negotiations for a Code of Conduct (COC) to manage conflicts. Additionally, the growing economic interdependence fostered by initiatives like the Regional Comprehensive Economic Partnership (RCEP) strengthens ASEAN-China ties, yet it also raises concerns about potential political leverage influencing member states’ autonomy.
The Challenge of Regional Stability
While the ASEAN-China dialogue offers a framework for promoting peace, its effectiveness is conditioned by broader geopolitical contexts, including China’s rivalry with the United States. The success of this dialogue rests on sustaining a commitment to multilateralism and peaceful dispute resolution. As ASEAN adapts to these complex dynamics, it must reinforce its unity and cooperative strategies, ensuring the region’s stability amid evolving challenges.
Source : Tug Of War In Southeast Asia: Will ASEAN-China Dialogue Tip The Balance Towards Peace? – Analysis
Asean
Cambodia Invites Business Leaders to Join the 21st China-ASEAN Expo in Nanning
Cambodia invites businesspeople to the 21st China-ASEAN Expo in Nanning, promoting trade and investment with incentives like hotel coupons and networking opportunities in various sectors.
Cambodia Invites Participation in CAEXPO 2024
Cambodia is actively encouraging business leaders, investors, and service providers to participate in the upcoming 21st China-ASEAN Expo (CAEXPO), set to take place from September 24-28 in Nanning, China. According to a Ministry of Commerce announcement, CAEXPO serves as a vital platform for trade and investment collaborations between ASEAN nations and China.
To facilitate Cambodian participation, the Ministry invites interested individuals to apply as Trade Visitors by August 31, 2024. Participants will benefit from hotel coupons, dining vouchers, and shuttle services to the expo venue. Furthermore, attendees can engage in business matchmaking in sectors such as food processing, digital technology, and renewable energy products.
Kin Phea, from the Royal Academy of Cambodia, emphasized the advancements in China-ASEAN relations, particularly concerning economic cooperation, tourism, and cultural exchanges. He noted that both sides have become each other’s largest trading partners, enhancing collaboration through the Belt and Road initiative, focusing on infrastructure and sustainable development.
Source : Cambodia encourages businesspeople to partake in 21st China-ASEAN Expo in Nanning