Moussons (Jun 2023)
The Economic and Political Implications of China’s Foreign Aid in Cambodia
Abstract
China’s foreign aid in Cambodia has been closely intertwined with its foreign policy goals and investment strategy, it is a key tool in the economic diplomacy devised by Beijing and has played a crucial role in the Chinese Communist Party’s relationship with Prime Minister Hun Sen. Since the beginning of the 2000s, China’s financial support in Cambodia tended to be skillfully used to secure a strategic and comprehensive production network in the country. By safeguarding major investments and leveraging key relationships with Cambodian high-ranking officials, the Chinese government has created an autonomous and profitable ecosystem for Chinese companies, all the while enriching the close-knit group in power in Cambodia. In addition to being a weapon to conquer Cambodia’s high-risk business environment, Chinese financial and material aid also have significant political implications, first on the Cambodian government’s political stance, and second on the Cambodian People’s Party governance. This article aims to specify the role of China’s foreign aid in the evolution of the Cambodian economic (resource extraction; logistics; special economic zones) as well as political and military context in the 2000s and 2010s. It deciphers the way Beijing’s aid deals locally with patronage and dependency in order to consolidate the close bilateral relationship at the benefit of its own regional strategy. At the same time, China’s aid strengthens Prime Minister Hun Sen’s grip on the Cambodian economy as well as on its domestic governance.
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