Cambodian official sees China’s booming economy increasing regional trade ties

Trade ties between China and Southeast Asian countries, including Cambodia, will be further deepened thanks to China's growing economy and their joint efforts in promoting free trade, a senior Cambodian official said.

"China is … the driver for economic growth in the region," said Sok Sopheak, secretary of state of the Cambodian Ministry of Commerce.

Citing China's beef imports as an example, which were nearly $20 billion in 2022, Sok said the country is a big market that offers opportunities for its partners to export their quality products.

Sok was speaking to reporters on Wednesday after attending a panel discussion titled Asia-Pacific Regional Cooperation: New Opportunities and Challenges, during the Boao Forum for Asia Annual Conference 2023 in China's island province of Hainan.

The four-day forum, which began on Tuesday, was held under the theme "An Uncertain World: Solidarity and Cooperation for Development amid Challenges".

Sok said he expects countries to continue benefiting from trade with China thanks to its open economic policy.

"It's good for not only Cambodia and ASEAN, but also some other members of the RCEP agreement," Sok said.

Entering into force on Jan 1, 2022, the Regional Comprehensive Economic Partnership is to date the world's largest free trade agreement, comprising the 10 member states of the Association of Southeast Asian Nations and its five major trading partners — China, Japan, South Korea, Australia and New Zealand. The agreement has been ratified by all its members.

In 2022, China's trade with other RCEP member countries reached 12.95 trillion yuan ($1.88 trillion), up 7.5 percent year-on-year, according to data from China's General Administration of Customs.

Sok said he sees opportunities for Cambodia from the country's bilateral free trade agreement with China, which came into effect at the same time as the RCEP.

"After one year of implementation, even though we are still suffering from the pandemic and high oil prices, we still increased our exports to China by around 4 percent," said Sok, adding a similar increase was seen in China's exports to Cambodia.

Chinese investment into ASEAN countries is also increasing rapidly, said Sok, adding that China's investment has helped many infrastructure projects in Cambodia.

China's nonfinancial direct investment in Cambodia was $690 million in the first 11 months of 2022, an increase of 32.7 percent from the previous year, according to the Economic and Commercial Office of the Chinese Embassy in Cambodia.

In addition, Sok said, Cambodia received a lot of assistance and concession loans for developing infrastructure and financing.

"This is some kind of shared future and prosperity between Cambodia and China," Sok said.

As a key consensus reached during Cambodian Prime Minister Hun Sen's visit to China in February, China and Cambodia issued a joint statement on building a China-Cambodia community with a shared future in the new era.

This year marks the 65th anniversary of the establishment of diplomatic relations between China and Cambodia and was designated as the China-Cambodia Friendship Year.