Cambodian PM Hun Sen refutes China debt trap allegations

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01:03

Cambodian Prime Minister Hun Sen told a Japanese forum on Thursday that Cambodia is not falling into so-called China's debt trap, saying its loans are low interest, low risk and were not a threat to national independence.

Speaking at the 25th Future of Asia conference in Tokyo, Hun Sen said China respected Cambodia's sovereignty when it came to using Chinese loans.

"I've heard so many people saying that Cambodia may fall into China's debt trap," Hun Sen said.

"For Cambodia, we maintain our sovereignty in borrowing, we borrowed according to the projects we need, and China respects our decision," he stressed.

Hun Sen told the forum that China respected Cambodia's decisions on how to use the loans. He added that Chinese loans were low interest and long-term, and that overall debt remained low, at 21.5 percent of gross domestic product (GDP).

Malaysian Prime Minister Mahathir Mohamad, Philippine President Rodrigo Duterte and Laotian Prime Minister Thongloun Sisoulith also attended the forum.

(Cover: Cambodian Prime Minister Hun Sen expresses concern about the U.S.-China trade conflict at the Future of Asia conference in Tokyo, May 30, 2019. /Nikkei Photo)