Chinese aid and investment in Cambodia have been major factors in its economic growth -- propelling the Southeast Asian country from one of the world's poorest to a developing nation. Our correspondent Martin Lowe has the details.
Relations between Beijing and Phnom Penh have never been better. China is both the biggest foreign investor in Cambodia, and the provider of most overseas aid. Chinese investment by late 2017 had reached 12.5 billion US dollars, around 36 percent of all investment in the country. Aid provided by Beijing totals around 250 million dollars a year, much of it going on infrastructure projects such as roads, bridges, irrigation and electrical transmission in line with China's Belt and Road policy.
SIPHAN PHAY CAMBODIAN GOVERNMENT SPOKESPERSON "The last 20 years our economy and GDP has maintained a steady growth of seven per cent plus and it's come from foreign direct investment from China."
MARTIN LOWE PHNOM PENH "Appreciated even more here in Phnom Penh is that China's aid comes with no strings attached. Other countries have imposed political conditions in return for aid – China has made no such demands. "
China has agreed to triple the amount of rice it buys from Cambodia, helping the country grow its rice exports by almost 70 per cent over the past five years. China's joined international efforts to preserve the Angkor Wat temple complex, the largest religious monument in the world, which is key to Cambodia's tourism industry. The two countries have set a target to have two million Chinese tourists visit Cambodia annually by 2020. And production at Cambodia's largest sugar mill – opened in 2016 after a 360 million dollar investment by Chinese owners – is running at record levels, providing work for local people and valuable contracts to farmers.