Linking BRI with Cambodia’s rectangular development


March 29, 2019

Linking BRI with Cambodia’s rectangular development

Khmer times:
Chinese President Xi Jinping (R) meets with Cambodian Prime Minister Hun Sen in Beijing, capital of China, May 17, 2017. Xinhua/Rao Aimin

The Belt and Road Initiative (BRI) is an ambitious international cooperation and connectivity project initiated by China in 2013. Cambodia is one of the staunchest supporters of the initiative with the expectation that BRI will contribute to peace and shared prosperity. As a small and open economy, Cambodia is committed to building an open and inclusive international system.

The second Belt and Road Forum for International Cooperation will take place in late April this year to further expand and deepen international collaborations and partnerships based on the spirit of peace, cooperation, openness, transparency, inclusiveness, equality, mutual learning, mutual benefit and mutual respect by strengthening cooperation on the basis of extensive consultation and the rule of law, joint efforts, shared benefits and equal opportunities for all.

Cambodian Prime Minister Hun Sen will lead a big delegate consisting of deputy prime ministers, ministers and other senior leaders to attend the forum in Beijing. Cambodian leaders will also have a number of bilateral meetings with some key Chinese business leaders who are interested in investing in Cambodia. BRI is a key framework, or even a catalyst, to encourage and facilitate the investment inflow from China to the Kingdom.

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In the joint statement of the first forum, the leaders stressed of forging joint endeavour on BRI and urged to build synergy between BRI with other connectivity initiatives. From the Cambodian perspective, building synergy between BRI with the five-year development plan, called Rectangular Development Strategy, is the priority of bilateral cooperation between Cambodia and China.

The Rectangular Development Strategy Phase IV prioritises four pillars namely human resource development, economic diversification, private sector and job development, and inclusive and sustainable development. At the core of the four pillars is the acceleration of the governance reform, which refers to institutional reform and capacity building, strengthening accountability and integrity in the public administration, strengthening of work effectiveness, and strengthening of private sector governance.

Under the BRI cooperation framework, China should further align BRI with key development areas of Cambodia. So far, Chinese development assistance and investment projects concentrate on hard infrastructure and labour-intensive industry. Both countries need to expand their areas of cooperation to include human resource development, digital economy and sustainable development.

The Chinese companies and factories should build vocational training centres or schools to build and transfer skills to local workers. Due to lack of local skilled labour forces, most of Chinese companies choose to bring Chinese workers, which costs more than hiring local workers. Chinese companies should also provide on-the-job training to build the capacity of local workers in order to improve productivity. In this regards, Chinese companies can learn a great deal from Japanese companies in terms of skills development and knowledge transfer.

Digital economy is the future economic sector of Cambodia. The key challenges facing Cambodia to realise a full-fledged digital economy are the lack of human resources and digital infrastructure, and the lack of public and private investment in innovation and entrepreneurship. Mega Chinese private companies like Huawei and Alibaba could help Cambodia to build the necessary infrastructure and human capital to help the Kingdom fully harness digital economy and the Fourth Industrial Revolution.

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In terms of inclusive and sustainable development, China and Cambodia should work closely together to link BRI with the UN Sustainable Development Goals and the National Sustainable Development Goals. Chinese investments need to further link with rural development and poverty reduction. Some investment projects relating to land grabbing, serious environmental degradation, and socio-economic exclusion need to be reviewed. Environmental and social impact assessment needs to be seriously conducted before deciding on investment or development projects.

The success of BRI depends very much on the quality of the projects and the perception and participation of the local community. Both countries still need to double their efforts to ensure that development projects under BRI really benefit the local people. People-centred development approach should be at the core of BRI and Cambodia-China partnership.

Suos Yara is Member of Parliament from Cambodia.

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  • Image result for benny widyono

The quintessential UN diplomat-DR. Benny Widyono

When career diplomat Benny Widyono died in his sleep in the United States on March 17, the world lost a beautiful bloke, a distinguished diplomat, a United Nations governor of Siem Reap Province and an Ambassador and Dean of the Diplomatic Corps as UN Ambassador to Cambodia.

Copyright © 2019 Khmer Times

 

Cambodia: Emerging from the Shackles of History in relations with Thailand, Vietnam and China


March 16,2019

Cambodia: Emerging from the Shackles of History in relations with Thailand, Vietnam and China

By Kimkong Heng and Veasna Var

http://www.ippreview.com

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Kimkong Heng is a doctoral candidate at the University of Queensland and a recipient of the Australia Awards Scholarship. Veasna Var is a doctoral candidate at the University of New South Wales, Canberra and a Senior Fellow at the Cambodian Institute for Cooperation and Peace.

Cambodia has a long history. It has both a proud past and a tragic history. The country had its period of greatness during the ancient Khmer Empire, an empire which built the fabled temple Angkor Wat, one of the seven wonders of the world. Following the Angkorian era which began at the beginning of the 9th century and collapsed 600 years later, Cambodia found itself in one of the most tragic periods in its history. For almost 500 years, the country came under the enduring pressure of foreign invasion and annexation. Both Thailand and Vietnam, its stronger neighbors, annexed large parts of Cambodian territory.

Cambodia, unable to survive by itself due to constant foreign encroachment from its two more powerful neighbors, reached out to France for protection. The French protectorate of Cambodia was then established in 1863, signalling the beginning of Cambodia’s colonial period which lasted for 90 years before the country gained its independence in 1953. Following independence, Cambodia, under late King Sihanouk’s reign, saw major development in almost all areas. Unfortunately, peace was short-lived and the process of nation building did not last very long, as Cambodia soon after found itself engaged in a series of civil wars which dragged on for more than three decades.

Starting in the 1960s, the country became a Cold War battleground and involved in the Vietnam War, was bombed by the US, and later suffered an unspeakable tragedy during the Khmer Rouge regime which lasted for almost four years and killed an estimated 1.7 million Cambodians.

The Khmer Rouge genocidal regime was so devastating that it had instilled in virtually every Cambodian a strong sense of hatred, fear, and scepticism. Although Cambodia was fortunate to have survived the auto-genocidal regime, this tragic past has profound implications for Cambodia and its people.

The memories of pain which cannot be blotted out easily and which will not fade away anytime soon have been carried over to present-day Cambodia and they still haunt the new generations of Cambodians. These bitter memories, either experienced first-hand or told from the survivors, have adversely affected the minds of Cambodian people from all walks of life. Common among them are negative thoughts and feelings towards foreigners or xenophobia.

Xenophobia in Cambodia is a serious issue which should not be ignored or taken lightly. It is a critical issue that has to be addressed carefully and quickly. If not addressed properly and timely, xenophobic sentiments may lead to large-scale violence, discrimination, and hatred. One example was a violent riot against Thai embassy and Thai businesses in Phnom Penh in 2003. This incident was obviously motivated by anti-Thai sentiments among Cambodians. At that time, there were rumors that a famous Thai actress had claimed that Angkor Wat belongs to Thailand. Without knowing whether the rumors were true or not, many xenophobic and nationalistic Cambodians began a savage attack on anything related to Thai.

Thailand and Cambodia share a common culture and history. People of both countries have made numerous claims regarding past events, lands, temples, arts, dances, and more. Each side has asserted and will continue to claim as their own relevant pieces of land, elements of arts and culture, and other claimable abstract and non-abstract things, despite historical facts.

There is no doubt a deep-rooted anti-Thai sentiment among Cambodians and perhaps vice versa. Whenever something which is controversial or uncertain happens, as long as it involves Thailand and Thai people, a sense of anti-Thai sentiments, an element of Cambodia’s broader xenophobic issue, would take centre stage. A notable example is a series of fierce border clashes between Cambodian and Thai troops over the Preah Vihear Temple between 2008 and 2011. The skirmishes were sparked by a land dispute which was in turn caused by conflicting narratives of historical facts and animosity towards each other.

All decisions, measures, and approaches to solutions of issues, be it political, economic, social, or cultural, tend to be clouded by anti-Thai sentiments which seem to exist in every Cambodians of all ages and genders. They seem to lie in hibernation inside Cambodian people and just need a small trigger to come back to life and begin, in many cases, to create problems and issues that could further exacerbate an already troubled situation. The consequences of which are generally unpleasant and harmful, easily leading to more racial discrimination, hatred, and anti-Thai nationalism. This issue of xenophobic sentiments, if not taken into account properly by both Cambodian and Thai governments and relevant stakeholders, will remain and will continue to harm Cambodia-Thailand relations and prevent harmonious co-existence between Cambodian and Thai people.

The anti-Thai sentiment is just one thing; anti-Vietnamese nationalism is another, an issue which appears to be even more serious in Cambodia. It is widely believed and known among Cambodians that Vietnamese people’s intention to encroach on Cambodian land never changes. Many Cambodian people hold a perception that Vietnam is a threat to Cambodia’s territorial sovereignty. This constant pessimistic thought about the Vietnamese, the so-called anti-Vietnamese sentiment, exists in almost every Cambodians to varying degrees. Much like the anti-Thai sentiment, this hatred towards Vietnamese people lies in a dormant state until it is “awakened” by any issue or incident involving Vietnamese.

Youn”, a Khmer word commonly used to refer to Vietnam and Vietnamese people, is arguably a pejorative term associated with anger and hatred. Khmer people often use this word instead of its equivalents, Vietnam and Vietnamese, to refer to their eastern neighbors when they are angry or want to express negative emotions about Vietnam and its people. As noted two decades ago, “forms of Cambodian racism towards Vietnam and the Vietnamese minority in Cambodia did not develop in a historical vacuum but rather developed particularly in response to the expansionist tendencies of the pre-colonial imperial state”. Apparently, almost if not all Cambodians know or have heard stories of Vietnam’s encroachment on Cambodian territory. They are all aware of the fact that many Cambodian provinces were lost to Vietnam. In particular, it is well-known among Cambodians that Vietnam encroached Prey Nokor (formerly a Cambodian territory) and institutionalized it as a city, now known as Ho Chi Minh City.

emories and knowledge of Vietnam’s encroachment on Cambodia’s sovereign territory are passed down from one generation of Cambodians to the next and are seen to be ingrained in the minds of many Khmers. Even now Cambodian people still think that Vietnam wants to “swallow” Khmer land and that Vietnam’s wish to take over Khmer territory still remains. This line of thinking is not helpful. Not only does it fuel anger, hatred and distrust among Cambodians, but it also stirs up widespread anti-Vietnamese feelings in Cambodia.

Recognizing the deep-rooted anti-Vietnamese sentiments among Cambodians, Sam Rainsy, the exiled leader of the now-dissolved opposition Cambodia National Rescue Party (CNRP), has always taken advantage of this issue and used it as part of his party’s main propaganda. As one of the authors of this analysis has argued in a recent article, anti-Vietnamese sentiments have always been a political tool Sam Rainsy and his party’s senior officials use to undermine their opponents, Prime Minister Hun Sen and his ruling Cambodian People’s Party (CPP) elites. The use of the anti-Vietnamese sentiment, another form of Cambodia’s xenophobia, is harmful, although the opposition party draws support from it. What this anti-Vietnamese rhetoric does is create tensions, division, and confrontations among Cambodians. Sam Rainsy and his party elites should begin focusing their attention on tackling other important social issues, not dwelling on using anti-Vietnamese sentiments for political gain at the expense of Cambodia-Vietnam relations and amicable existence between people of the two neighboring countries.

Moving beyond the anti-Thailand and anti-Vietnam sentiments, Cambodia still has to face other forms of xenophobia. There were memories of anti-French sentiments, particularly among older Cambodians, driven by the impact of French colonization of Cambodia. However, now there seems to be no evidence of any anti-French sentiment in Cambodia today, as all attention is given to more modern issues facing the country. Looming large are key issues such as income generation, self and family survival, education, politics, and other critical social issues.

The Cambodian government should improve law enforcement and work hard to reduce the large and growing number of unpleasant incidents such as violence, accidents, and abuses that tend to involve the Chinese diaspora living in Cambodia. The anti-Chinese sentiment has emerged from these issues.

It is particularly and surprisingly fortunate that seemingly the whole country has moved beyond discrimination and historical hatred against France whose colonization of Cambodia led to the loss of Kampuchea Krom (former territory of Cambodia) to Vietnam in 1949. Although there have been petitions demanding the decolonization of Kampuchea Krom territory, there seems to be no sign of animosity expressed towards France and the French people. Little is known why Cambodians seem to disregard the fact that the French colonialist “cut” Kampuchea Krom and gave it to Vietnam, despite numerous protests from Khmer Krom activists in Cambodia and abroad. However, that Kampuchea Krom was ceded to Vietnam by the French has obviously further intensified anti-Vietnamese sentiment among Cambodians.

Moving forward, two issues remain which could potentially become new forms of xenophobia in Cambodia, if not addressed properly and in a timely manner. The first is the incumbent government’s recent reiteration of the US bombing of Cambodia in the late 1960s and early 1970s that contributed to the rise of Pol Pot and the Khmer Rouge which took control of Cambodia in 1975 and immediately proceeded to decimate the country and its people, wishing to create a pure, self-reliant, and sovereign Khmer nation. Hun Sen and his team’s criticism of the United States, although offering short-term benefits to their party, is also harmful. It may over time develop a sense of hatred and ill will towards the US and American people, potentially creating another form of xenophobia in Cambodian society, that is, anti-American sentiment among Cambodians, particularly those who support the current ruling party.

In reality, history is history; it can neither be denied nor changed. However, it is much better to learn from past lessons to plan for the present and future rather than let the past control the present and dictate the future. The ruling elites of the CPP, in this regard, should move beyond their recent narratives of the “US bombing” and, like the CNRP, should direct their attention to resolving pressing social issues facing Cambodia. Repeating and promulgating the damage that the US inflicted on Cambodia in the 1970s will not benefit Cambodia and its people in the long run. It only exacerbates the current poor relations between the US and Cambodia, which is certainly not a viable foreign policy option for the latter.

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The second issue which has arisen recently in Cambodia is the emergence of anti-Chinese sentiment which appears to be on the rise. The perceived increase of anti-Chinese feelings among many Cambodians are seen as a negative side effect of the growing Chinese presence in Cambodia, especially in the country’s coastal province, Sihanoukville. Over the last few years, Chinese investors have in large numbers flocked into Sihanoukville to invest in building casinos, apartments, theme parks, and resorts.

The Chinese’s increasing presence has implications for the Cambodian province and Cambodia at large. Not only can one see the mushrooming of high-rise buildings, casinos, restaurants, and other businesses run by the Chinese immigrants, but one can also experience or at least feel an increase in crime, violence, drug trafficking, and pollution, in the once-sleepy coastal province. There are frequent reports in the news about violence, abuses, scams, cybercrime, and violations of expected social norms and rules of law, many of which involve the Chinese living and working in Cambodia and in Sihanoukville in particular. Until October 2018, for example, 1,649 Chinese nationals were deported from Cambodia for scams and cybercrime offenses. These many incidents, together with similar stories happening in other countries, have arguably contributed to the emerging rise of anti-Chinese sentiments among the general public in Cambodia.

This new issue of anti-Chinese nationalism may not be seen as a serious issue now, but if left to develop freely and not addressed properly and timely, it is likely to lead to a big problem, consequences of which is less predictable and should raise concerns for the Cambodian government and Cambodian people. It is the duty and responsibility of the current ruling government of Cambodia to find ways to address the issue while it is still in the early stages. Although the Cambodian government, especially the ruling elites, has significantly benefited from Cambodia’s close relationship with China, it is wise to diplomatically bring this issue to the discussion table and work towards collaborating with the Chinese government to tackle this rising anti-Chinese sentiment among the Cambodian populace. It is always a good idea to make big problems small and small problems even smaller. To do so, the Cambodian government, with support from its Chinese counterpart, has to do something to deal with this emerging issue.

Xenophobia in Cambodia, whether it is a long-standing issue like anti-Thai and anti-Vietnamese sentiments or a new one like anti-Chinese sentiment, is a critical issue that needs to be addressed properly and taken more seriously than it currently is. As has been argued, Cambodian youth have crucial roles to play in improving Cambodia-Vietnam relations. Youth are the backbone of the country and the future of Cambodia. They are “Cambodian ambassadors in the making who are responsible for raising the profile of Cambodia in the region and the international stage”. They can contribute to navigating the Cambodian ship as long as they are given chanced and their efforts are recognized and valued. Thus, engaging youth in all realms of political, economic, social, and cultural life, for example, is important and is what the Cambodian government should strive for.

Cultivating and nurturing mutual respect, understanding, and tolerance between people of all nations involved is also crucial. In the case of Thailand and Vietnam, prevalent racial hatred, contempt, and discrimination resulting from awful past history and recent events can probably be minimized through the cultivation of genuine and mutual respect between Khmer and Thai people and between Khmer and Vietnamese. With respect to improving Cambodia-Thailand relations, one of these authors has also argued in an article in the IPP Review for the important role of mutual respect and the role of Cambodian youth in shaping Cambodia’s relations with Thailand. As it is argued, Cambodian people, youth in particular, “should not dwell on their dark history; instead, they should use lessons from history to help them make informed and impartial judgments when dealing with issues concerning Thailand and its people”.

However, these cannot be done without support from the Cambodian government as well as governments of Thailand and Vietnam. All parties have vital roles to play in fostering and improving their respective relations. Efforts, commitment, and cooperation at all levels, individual, institutional, and national, are essential. These are important steps towards fostering good relations between these countries which have regarded each other as one’s own traditional enemy.

With respect to the US, the Cambodian government should stop using the rhetoric of US bombing of Cambodia. While it is true, it only worsens Cambodia’s relations with the world’s largest economy. Although Cambodia has great relations with China, its largest economic and military benefactor, it would be unwise to alienate the US and fully embrace China. The most viable approach or way forward for Cambodia is to make as many friends as possible. It is undeniably true that having two best friends, the US and China, is absolutely better than having just one friend. All Cambodian eggs should be placed on two or more baskets, not just one basket. It is safer and more secure that way.

On the issue of anti-Chinese sentiment, Cambodia should take it into account most seriously. Now it seems to be not an issue yet but it will be a problem, a big one, if no due attention is paid to it. Recently, Prime Minister Hun Sen has urged and assured that many Chinese immigrants who are working in Cambodia, particularly in Sihanoukville, will leave the country once the Chinese projects for which they work are complete. This assurance is helpful but not sufficient. The Cambodian government should improve law enforcement and work hard to reduce the large and growing number of unpleasant incidents such as violence, accidents, and abuses that tend to involve the Chinese diaspora living in Cambodia. The anti-Chinese sentiment has emerged from these issues. Addressing them would also address the recently growing anti-Chinese feelings among the Cambodian general public.

Finally, xenophobia in Cambodia is a major social problem that requires absolute attention from all stakeholders in the country. It is neither the job of the government nor the duty of Cambodian citizens alone. It is a critical issue that requires cooperation, commitment, understanding, and willingness from all parties, regardless of their political views, positions, or beliefs. Cambodian xenophobia and paranoia, no doubt, have a malign influence on Cambodia’s efforts to promote the Kingdom’s integration into the region and the world. It will definitely damage the image of Cambodia on the global stage in the long term.

It is time for Cambodians, the ruling elites and the ordinary people, to work together in unity and in harmony to solve key issues facing their country. As a saying goes, “God helps those who help themselves”. Thus, Cambodians must work collaboratively and willingly to help themselves and their country.

 

 

Cambodian Foreign Policy is headed in the right direction


February 20, 2019

Cambodian Foreign Policy is headed in the right direction

by  Taing Vida / Khmer Times

https://www.khmertimeskh.com/50579745/leng-thearith-says-foreign-policy-is-on-the-right-track/

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 A Cambodian scholar said that Cambodia’s foreign policy towards its neighbours and other countries in the world has been on the right track.

In a Cross Talk interview with Khmer Times on Monday, Leng Thearith, Director of Center for Strategic Studies, said the Kingdom’s foreign policy has improved after the country held its 1993 UN-brokered national election, and has been reformed over the past three years, especially in capacity building and strategic analysis.

Mr Thearith said the Kingdom has good relations with other countries thanks to the government’s efforts in integrating the country into the region as a member of the Asean and the World Trade Organisation.

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However, he said as a small state, Cambodia has limited strategic space to manoeuvre while its foreign policy dynamics face considerable challenges.

“It’s important for a small state like Cambodia to prevent itself from any attack that might be caused by powerful states,” he said. “We must oppose them in order to protect our sovereignty but at the same time, we must cooperate with those states to ensure good relations.”

Mr Thearith said that Cambodia is now seen as apologetically leaning towards China after the government received strong support from China through aid and loans without strings attached, noting that the country’s current approach toward the United States and the European Union will not be helpful in the long run.

“For now, I’m sure that the government is on the right track. Cambodia’s foreign policy’s behaviour changes from time to time,” he said. “Although Cambodia is now leaning towards China, I think the country will change and turn to other developed countries like Japan.”

Mr Thearith said that the government slammed the EU and the US because they meddled in Cambodia’s internal affairs, but later should mend ties for development benefits.

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“For now, the government can turn its back on the EU and the United States because they interfere in the country’s political issue and sovereignty,” he said. “However, in the upcoming years, the government should restore the relations and take advantage of them as development partners.”

The EU last week started the process of intense monitoring and engagement for six months that could lead to the temporary suspension of the EBA trade scheme over perceived human rights setbacks and the decline of democracy following the dissolution of the CNRP.

In response, the Cambodian government condemned the EU trade threat as an extreme injustice, accusing it of using double standards in its treatment of Cambodia.

Political analyst Lao Mong Hay said that the country’s current foreign policy is not on the right track as it is sucked in the Sino-American conflict.

“Now Cambodia is being sucked in the new Pacific war and specially the Sino-American conflict,” he said, noting that the foreign policy behaviour has led Cambodia back to the pre-1970 situation where it was gradually sucked in the then ongoing international conflicts.

FOREIGN POLICY: Cambodia needs to maintain good relations with the West


FOREIGN POLICY: Cambodia needs to maintain good relations with the West. Like it or not, the CPP still needs the West

There is an assumption by some commentators and analysts (myself included, on occasions) that just because China is now Cambodia’s closest political ally, the influence of Western nations has become negligible.

As early as 2015, Sebastian Strangio noted in his book Hun Sen’s Cambodia  that Western influence in Cambodia had “begun to wane.” Years on, this process was complete, according to many. In late 2017, Foreign Policy magazine reported on the “limits of US willingness or ability to influence Cambodia become clear when compared to China’s overwhelming influence there.” “Why the West was doomed to fail in Cambodia,” reads a headline from the Southeast Asia Globe last year. The exiled political analyst Kim Sok more recently asserted that Prime Minister Hun Sen “has no choice but to rely on the Chinese” as he increasingly pushes the West away.

China might be many things to Cambodia: the main provider of aid, investment and goods, a key geopolitical ally and something of a sagacious, avuncular mentor, an “ironclad friend” in Phnom Penh’s argot. But it isn’t, and most likely never will be, a major importer of Cambodia-produced goods. Instead, the major importers are the United States and the European Union. Together, they imported a little under two-thirds of all Cambodian exports in 2017. China, by contrast, imported just 6% of Cambodian total exports that year.

This matters greatly as both the US and EU now threaten to impose trade sanctions on Cambodia and re-introduce tariffs on its exports, a response to the Cambodian People’s Party (CPP)’s stage-management of last year’s general election, at which it won all the seats in the National Assembly, and its dissolution of the main opposition party, the Cambodian People’s Rescue Party (CNRP), the previous year. On 11 February, the EU formally started the 18-month process to remove Cambodia from its preferential Everything But Arms (EBA) scheme, a process that can be stopped if the EU thinks Phnom Penh is making sufficient progress in political and human rights reform.

Cambodia’s economy, despite years of high economic growth, remains highly dependent on exports. Products made in its garment and footwear sector—the largest employer, by sector, and largest contributor to GDP—almost exclusively are exported to Western nations. So should the EU withdraw Cambodia from its Everything But Arms (EBA) scheme, which grants Cambodian exporters duty and quote-free access to European markets, then the imposition of tariffs and quotas will certainly see exports to Europe plummet, causing a considerable slump in the Cambodian economy.

The government knows this. That’s why it planned for years to reduce the economy’s dependence on exports, chiefly low-cost manufactured goods. But progress has been slow, if not glacial. Granted, the tourism sector is booming thanks to increasing numbers of Chinese visitors. So too are the retail and property sectors. But exports are still prepotent. There is likely zero chance, despite the opinions of some analysts, that if Western democracies punish Phnom Penh by imposing higher tariffs on its exports or switching to suppliers in other nations, then China can simply jump in and bail out Cambodia. Quite obviously, China doesn’t need to import low-cost garments from Cambodia; it produces more than enough domestically. China’s main import to Cambodia, the raw materials stitched and sewed at Cambodia’s garment factories, would also be harmed if exports to Western nations slump. Chinese investors own many of the largest firms in Cambodia’s garment and footwear sector, so they will be among those who will lose out if exports dry up. Moreover, Beijing would have wasted millions, if not billions, of dollars on funding new roads, ports and special economic zones in Cambodia that were aimed at improving its export capabilities.

A more astonishing response from Beijing would be to simply hand Cambodia the cash to make up for any shortfall if exports to the West decline, a move some analysts think is possible. But it’s actually improbable. Would this come in the form of concessional loans or simply cash payments? The latter would be raise serious opposition in Beijing, where some policymakers and analysts are already becoming sceptical of the amount of money wasted through Xi Jinping’s signatory Belt and Road Initiative (BRI). At least for the BRI, however, Xi can point to the likelihood of future returns on investments. Few profits, though, would be reaped by simply bailing out Cambodia’s exporters.

The other option, bailouts in the form of loans, would be just as risky to the Cambodian government, which is struggling (though doesn’t admit it) with a growing public debt, especially to China. How would Phnom Penh square the circle of attaining more loans if exports, its chief means of acquiring foreign currency, dwindle? Moreover, say that new European tariffs on exports and reductions in trade see Cambodia’s exports figures slump just 10%, or roughly US$500 million a year. Would China be willing to provide this much annually for few returns? Also, what about the knock-on impact to other sectors in Cambodia if exports slump? It would certainly see investment and profits contract in the retail, construction, property and many other sectors, too. The real costs of even a minor slump in garment exports is likely to be felt throughout the economy, as well as by the millions of family members of workers who rely on remittances each month.

Whichever way one looks at it, Western nations still have considerable influence in Cambodia. They clearly know this and that’s why they are exerting pressure on Phnom Penh to make political reforms through threats to the country’s export-driven economy. The Cambodian government, for the most part, either says it isn’t concerned about threatened Western sanctions, claims that they are an assault on Cambodia’s sovereignty, or a move to punish only poor Cambodians. It hasn’t yet publicly admitted that its own actions may actually be the real cause.

But here’s the kicker: trade with the US and EU might be immensely import to Cambodia, but it’s only negligible to them. Indeed, the EU’s trade with Cambodia—which is overwhelmingly Europe importing Cambodian goods, not the other way around—is worth about a tenth of its trade with Vietnam, for example. So there wouldn’t be any mutual catastrophe if exports decline; it would simply be felt by one side. Just look at how the US is currently weathering new tariffs President Donald Trump imposed on Chinese imports, which could soon be raised even higher. Any loss in trade with Cambodia won’t even be felt as a tremor in America, though it would be an earthquake in Cambodia.

Remember, too, that it isn’t as though Cambodia is the world’s only producer of cheap clothes and shoes. Bangladesh is making them for much cheaper, as does Vietnam, whose ruling Communist Party is now backing down to American and European demands for some political and legal reforms in order to boost trade. Hanoi appears more than happy to negotiate, while Phnom Penh stuffs its ears. It would be so much easier from some European importers to simply say, enough of Cambodia, and move operations or find new supply chains in other countries.

Amid all of this, pay attention to the irony of the situation. The CPP government has largely been allowed to do what it wants politically for so many years because of the fat profits reaped from its export-driven economy. Years, if not decades, of enviable economic growth rates have provided the CPP government with its main source of legitimacy; the economy is growing, wages are raising, unemployment is low, and we’ve created a brighter future for Cambodia, the party constantly says. Much of the public who might be unhappy with political conditions temper their emotions with this acknowledgment.

But the CPP government today faces a novel problem. While it was a low-cost, export-driven economy that gave the party so much legitimacy, the same export-driven economy is now its Achilles heel. However much it wants to drag itself under the parasol of Chinese patronage, it remains exposed to the storms of Western trade.

 

 

 

 

Cambodia- China Strategic Partnership–Is everything about China bad?


January 23, 2019

Cambodia- China Strategic PartnershipIs everything about China bad?

by Doung Bosba

ttps://www.khmertimeskh.com

 

Cambodian ruling elites are China-educated

Wrong. None of the current Cambodian ministers are China-educated. In fact, most of them are Western educated. Their offspring are also mostly or wholly Western educated.

The number of alumni speaks for itself. The Fulbright and Undergraduate State Alumni Association of Cambodia (FUSAAC) has more than 1,000 members. Australian Alumni Association of Cambodia has over 700 members and Japan Alumni of Cambodia registered more than 1,000 past recipients of Japanese scholarships. As of now, the fact that around 1,000 Cambodian students studied in China does not mean that they are controlling the whole educational aspect of Cambodia.

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According to data entitled “Global Flow of Tertiary-level Students” of Unesco in 2017, Thailand was the top destination with 1,031 Cambodian students, followed by Australia (908), United States (560), Vietnam (432), France (431) and Japan (397). China was not even on the list.

Cambodia is benefiting from trade with China

Wrong. Cambodia has never relied on trade with China. Trade with China has always been a deficit for Cambodia. The trade volume between Cambodia and China was valued at $5.8 billion in 2017 and Cambodia’s exports to China has not even reached $1 billion, making the trade deficit for Cambodia larger than 80 percent vis-à-vis China.

While in 2018 China agreed to increase Cambodia’s rice import quota to 300,000 tonnes, a deal was struck in 2014 that China would annually buy one million tonnes of Thai rice for five years.

Vietnam who is China’s strategic rival is actually one of the leading trading partners in Southeast Asia. In 2017, Vietnam-China bilateral trade stood at $93.69 billion.

There is a Khmer saying that goes, “you get angry with the cow but you hit the cart.” In this case, when the EU is displeased with China’s influence in Cambodia, and assumes that Cambodia is too much reliant on China, they instead decide to kill Cambodian jobs by introducing measures aimed at cutting down EU–Cambodia trade.

Cambodian ports are being controlled and militarised by China

 

 

 

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Sihanoukville

Wrong. Some foreign pundits even mix up between two coastal provinces of Cambodia, namely Preah Sihanouk and Koh Kong provinces.

If this myth is aimed at Sihanoukville port, which is the only deep-water seaport in Cambodia, it is grossly wrong because technically speaking Sihanoukville Autonomous Port is almost under Japanese control. Japan has provided support to Sihanoukville Port for a long time. Starting with the 1999 Sihanoukville Port Urgent Rehabilitation Project, which was the first Japanese loan to Cambodia, JICA has provided continuous support for infrastructure and operations capacity building at the port through loans, grant aid and technical cooperation.

Japanese investors also hold the biggest percentage of shares in the Port’s public offering. More than 60 percent of the shares in the IPO were bought up by two Japanese institutional investors, one of them being the Japan International Cooperation Agency or JICA. National investors now control 35.57 percent of the issued shares after the IPO, while foreign investors hold 64.43 percent – the largest of which was JICA.

As for another sea port at Koh Kong Province, it is being developed by China’s Tianjin Union Development Group (UDG) as part of its $3.8 billion Dara Sakor Beachside Resort project.

Asia Times and the Southern China Morning Post have been publishing articles insinuating militarisation of the port. As the saying goes, “Repeat a lie a thousand times and it becomes the truth.” Is it really true? Firstly, logically speaking, if it is a military port, it has to be under the jurisdiction of the Ministry of National Defence. This means that, to become a militarised port, Cambodia needs to nationalise that private investment, which is definitely not a smart move for any pro-investment country. Secondly, if it is a deep sea port, it is generally an acceptable practice to receive military ships, which are not permanently based, on account of friendship promotion or even business service provision.

Take for instance, the operation of Logistics Group Western Pacific (COMLOG WESTPAC) and Navy Region Center Singapore (NRCS) in Singapore. According to a Naval Today article published on August 9, 2012, “While no US base exists in Singapore, the US Navy presence here dates back several decades and the Navy leases facilities from the Singaporean government. Today, the US military community in Singapore includes active duty, civilian personnel and family members, distributed among 15 commands.

“COMLOG WESTPAC was established at the Port of Singapore Authority (PSA), Sembawang Terminal, in July 1992…. Established in 2007, NRCS provides administrative support to nine Navy, Army, Air Force and Joint commands in Singapore. It also manages 165 family and bachelor housing units and dozens of command, administrative and warehouse facilities.

“Additionally, COMLOG WESTPAC is 7th Fleet’s Theater Security Cooperation agent for Southeast Asia, promoting military-to-military relations and coordinating exercises such as Cooperation Afloat Readiness and Training.”

If the Asia Times and the South China Morning Post are anticipating that Cambodia is planning to provide such support to China like what Singapore is doing for the US, in terms of capacity, manpower and logistics, they are wrong. Cambodia is no way comparable to Singapore and still has a very long way to go. Since the colonial era, Cambodia has never been a major seaport. Most importantly, as an integral part of its foreign policy, Cambodia has never aspired to host a foreign military base regardless of foreign twisted perception.

Cambodia is providing privilege to Chinese investors

Wrong. Investment in Cambodia is not nationally labeled. The case in point is the comparison between two special economic zones with a similar name, Sihanoukville Special Economic Zone (SSEZ) and Sihanoukville Port Special Economic Zone (SPSEZ).

SSEZ has been jointly developed by Chinese and Cambodian enterprises. Established in 2008, SSEZ boasts more than 100 predominantly Chinese enterprises, making it the biggest and most active SEZ in the country both in terms of size and occupancy. More than 16,000 people are employed in the industrial park. SSEZ is trying to attract 300 enterprises and grow to a total of 70,000 to 80,000 workers within the next five years.

Image result for neak leung bridge

The Imposing Japan- built Neak Loeung bridge in Kandal- Prey Veng province

On the contrary, SPSEZ which is being developed by the Sihanoukville Autonomous Port Authority of Cambodia is just hosting three companies since the start of operations in 2012. The $33 million loan for building the SPSEZ came from Japan. The government is relying on Japanese expertise which in turn has set high ethical and environmental standards for investors. The harsh reality is that there is little interest among Japanese investors.