Saturday, August 17, 2024 In May 2024, Cambodia marked a significant moment in its relationship with China by renaming one of Phnom Penh’s major roads as ‘Xi Jinping Boulevard.’ This gesture underscored the critical role that China’s economic and political support has played in Cambodia’s development. While this partnership has undeniably contributed to Cambodia’s growth and stability, it also raises several concerns that could have far-reaching implications for the country’s future.
China has been a major financier of Cambodia’s infrastructure projects, contributing to several key developments, including the Phnom Penh-Sihanoukville Expressway, the Phnom Penh Ring Road, the Funan Techo Canal, and the Siem Reap–Angkor International Airport. These projects have significantly enhanced Cambodia’s connectivity and overall economic situation. However, the reliance on Chinese funding for large-scale infrastructure has sparked concerns about the potential for a debt trap, given that China now accounts for over 40 percent of Cambodia’s external debt, which totals approximately US$11 billion.
The U.S. government has raised alarms about the Belt and Road Initiative, labeling it a debt trap that could lead to countries losing sovereignty over strategic assets offered to China as collateral.
The example of Sri Lanka, where the Hambantota International Port was leased to a Chinese state-owned enterprise for 99 years in 2017, is frequently cited as a cautionary tale. .