Cambodia, China Ink New Economic Pact

Agreement seen as boost for the bilateral economic relationship.

Cambodia, China Ink New Economic Pact

China and Cambodia inking an agreement to combat money laundering and terrorism financing at the People’s Bank of China in Beijing earlier this month.

Credit: National Bank of Cambodia

China and Cambodia inked a new pact last week that will boost the trade and investment relationship between the two countries.

The Cambodia Chamber of Commerce (CCC) and the China Council for the Promotion of International Trade (CCPIT) signed a memorandum of understanding (MoU) Friday. The deal was inked by CCC President Kith Meng and visiting CCPIT Chairman Jiang Zengwei in the Cambodian capital of Phnom Penh.

Kith Meng said that the pact covered various areas of cooperation including trade promotion activities, capacity-building, and the exchange of information and visits. He added that it would boost the overall Sino-Cambodian economic relationship.

“The MoU will contribute further to enhancing trade and investment relations between the two countries,” he said according to China Daily.

The agreement was inked during an investment forum as Jiang led a group of 47 Chinese business executives to Cambodia.

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Later that day following the signing of the pact, Cambodian Prime Minister Hun Sen addressed the delegation, outlining Cambodia’s outlook and encouraging more Chinese investment into the Southeast Asian State. Kao Kim Hourn, a minister attached to the prime minister, said Hun Sen emphasized that four sectors in particular – transport, water, energy, and human resources – should be a focus of Chinese investment.

Jiang, for his part, was very encouraging about the prospect for greater investments to occur.

“Enterprises play a very important role in promoting trade and investment relations between the two countries,” Jiang was quoted by Chinese state media as saying. “The CCPIT is ready to encourage more Chinese enterprises to invest in Cambodia and to assist Cambodian companies wishing to do businesses in China,” he added.

According to official statistics, trade between China and Cambodia was recorded at $2.34 billion during the first half of 2016, up over 10 percent year-on-year, while Beijing has invested about $14 billion into Cambodia from 1994 up to March 2016.