via CAAI
By Kyle Dometrovich & Zack Pinsky
Staff writers
Published: Thursday, December 9, 2010
Recently, Cambodia has seen a drastic influx of money into their economy due to Chinese investment, following a period of serious economic downturn. These monetary gains, however, come at a great cost to Cambodian citizens.
As the economy develops, the Chinese government strengthens its stranglehold on Cambodia's infrastructure.
According to the Washington Post, in 1997, Chinese investment in Cambodia tripled from past years. This increased another 40 percent in 1999, making China the largest foreign investor in the Cambodian economy.
Along with economic support, China has contributed significant military aid, totaling $14 million, to Cambodia, according to the Indian newspaper ZeeNews. As China continues to monopolize Cambodian infrastructure, there is growing global concern about the independence of Cambodia.
"You don't want to get too dependent on any one country," said U.S. Secretary of State Hillary Clinton to the Washington Post, in reference to the situation in Cambodia.
Cambodia's situation is in no way unique. It has been seen in Vietnam and in South America as well; cases of resources being exploited by those with the means of production are not uncommon.
Chinese investment appears to benefit Cambodia, but many are questioning the motives behind the infrastructural improvements.
In October 2010, China promised to support the construction of a $600 million railway between Phnom Penh, Cambodia, and Vietnam, paving the way for a Chinese East Asia, according to The Phnom Penh Post.
In 1999, with the hopes of unifying Southeast Asia, China entered into a free-trade deal with 10 members of the Association of Southeast Asian Nations (ASAN). This deal removes duties from 90 percent of goods exchanged between these nations, reports The New York Times.
With China's trade tripling within Southeast Asia between 2003 and 2008, many question the fairness of the agreement. The agreement has benefited China's industry greatly, according to The Telegraph.
"On the Chinese side, the sectors that will benefit the most are light manufacturing, such as electrical and electronic goods, clothes, footwear, porcelain and so on," said Zuo Liancun, an economics professor at Guangdong University in China, to The Telegraph. "For South East Asian countries, they will sell more agricultural products and natural resources."
Cambodia, for instance, is rich in timber, and China has been a major importer of timber. While economically beneficial for both countries, the transaction is affecting the fauna of Cambodia. According to The China Post, Cambodian activists have been warned of the environmental harm that will result from such rapid industrialization.
"China looks beyond economic interests toward more strategic interests in this region," said Cheang Vanarith, director of the Cambodian Institute for Cooperation and Peace in Phnom Penh, to VOA News. "China used to be the center of the universe. China is the kind of regional hub in terms of strategic and economic. Some people call it China returning to the past."
China's history of imperialism dates back past 200 B.C. With the recent investments in Cambodia's infrastructure, many fear that China is returning to its imperialist roots.
"Injecting $1.6 billion into Cambodia's economic infrastructure endeavors is nothing but neo-imperialism," said junior and economics major Imir Paz. "Twenty-three cooperation projects create an environment where China ultimately has total control of investments."
With China's continued investment, Cambodia moves closer to becoming a part of a Chinese economic monopoly.
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