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BRI brings profound impact to Cambodia, Australian Scholar says BRI a Public Good for Developing Countries, BRI provides path to mutual benefits,
BRI brings profound impact to Cambodia
Cambodia's strategic location on the Mekong River south of Laos and between Thailand and Vietnam on the Gulf of Thailand has made it an important hub for trade and connectivity in the Southeast Asian region. And China's investments in Cambodia have catalyzed a remarkable transformation of its infrastructure.
New highways, railways, seaports and airports have been built or old ones upgraded, facilitating efficient transportation of goods and movement of people within and beyond Cambodia's borders. These infrastructure are connected to free trade zones (FTZs) and special economic zones (SEZs) that have further improved regional connectivity, facilitating trade and attracting foreign investment while boosting Cambodia's economic growth and creating employment opportunities for its people.
The Belt and Road Initiative has also played a significant role in strengthening trade relations between China and Cambodia. With improved infrastructure and logistical capabilities and a new free trade agreement between the two countries, Cambodia has become an attractive destination for international investors and businesses looking to expand their presence in the region. The increased trade volume has resulted in a more diversified economy and helped Cambodia develop its energy, telecommunications, financial, logistics, tourism and agricultural sectors.
Besides, Chinese investments in Cambodia's agricultural sector have helped modernize farming and improve productivity, and have had a positive impact on Cambodia's agricultural exports, benefiting local farmers and boosting the country's processing and packaging sectors. In fact, Cambodia has become a key source of rice, fruits and vegetables for the Asian market.
Cambodia is rich in minerals, and the Belt and Road Initiative's infrastructure projects have helped increase mining and mineral processing activities. Large-scale projects such as mining and forestry require strict environmental controls and monitoring. And since its focus on sustainability and green development is guided by the United Nations 2030 Sustainable Development Goals, the initiative prioritizes stringent environmental regulations and monitoring mechanisms to ensure compliance to the SDGs when it comes to investments in mining, agriculture and forestry. The Belt and Road Initiative accords priority to renewable energy sources, too, and promotes biodiversity conservation efforts.
Keeping all these factors in mind, China's investment in energy infrastructure has helped alleviate Cambodia's power shortages and fostered sustainable development. The construction of hydropower plants, solar panel farms and power transmission networks has increased the country's energy production capacity, reducing dependence on costly imported energy sources, which in turn has improved power supply, spurring industrial growth and attracting foreign direct investment in energy-intensive sectors. Also, Chinese companies' investments in the electrification of the transport sector have widened the electricity charging network. As a result, Chinese-made electric vehicles have become a common sight on Cambodia's Belt and Road Initiative-funded highway networks.
One of the most significant outcomes of Belt and Road projects in Cambodia is the construction of the Sihanoukville Special Economic Zone, which has attracted foreign investments and boosted Cambodia's manufacturing sector, leading to job creation and increased exports. In partnership with investors in the Sihanoukville and Phnom Penh SEZs, Cambodia is now processing its rubber into car tires, and has become a leading exporter of other value-added products such as car parts and bicycles.
Investments in Cambodia under the Belt and Road framework have also stimulated the construction and real estate sectors, leading to the development of modern residential and commercial properties across the country. Despite slowing down during the COVID-19 pandemic, the construction sector remains a key employment generator, boosting incomes, improving living standards, reducing poverty and underpinning socioeconomic development.
The socio-cultural impact of the Belt and Road Initiative projects on Cambodia has also been profound, with significant changes evident in local communities. One notable change is the rapid urbanization and modernization of previously rural areas as the construction of roads has connected remote regions to major cities, facilitating the movement of goods and people. This has resulted in the emergence of new urban centers and the expansion of existing ones.
In the post-pandemic period, international and Chinese tourists in Cambodia are benefiting from improved transportation, hospitality infrastructure and globally integrated electronic payment systems. Thanks to the improvement in infrastructure connectivity, the country's rich cultural heritage and historical sites have become more accessible to both domestic and international tourists, with the influx of tourists generating significant revenue and providing new economic opportunities for local communities, which are working for, operating or have built hotels, restaurants and retail shops.
Moreover, cultural exchanges between China and Cambodia have increased as a result of the Belt and Road Initiative. With Chinese tourists, workers and investors bringing their traditions, language and customs to Cambodia, the integration of Chinese elements into Cambodian society has intensified. And many Cambodian students enjoy scholarships and increased access to universities and vocational training institutions in China through Belt and Road cultural and education networks. Such intercultural exchanges enrich cultural diversity.
In conclusion, the Belt and Road projects in Cambodia highlight the benefits of comprehensive planning, good and transparent governance, environmental protection, partnership building and robust monitoring mechanisms. To realize the full potential of the initiative, Cambodia and China should deepen win-win cooperation to jointly build a high-quality, high-level Cambodia-China community with a shared future.
Digby James Wren is a senior adviser, director of the Mekong Research Centre and founder of the Young Minds Education Program of the International Relations Institute, Royal Academy of Cambodia; and Seun Sam is a policy analyst with the Royal Academy of Cambodia.
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BRI provides path to mutual benefits
Wang had flown from China to take part in the then-nascent East-West Highway project — the biggest project in the country — which his company, China Railway Construction Corp Algeria, had won the contract to build.
Abdelhakim's kindheartedness impressed Wang, and when his company recruited drivers, he invited Abdelhakim to join.
Through Abdelhakim's hard work and the training that the company offered, he eventually became a human resources manager, and his family moved to a new house from an apartment that he shared with his parents.
The East-West Highway is among projects that have been built under the framework of the China-proposed Belt and Road Initiative, and Abdelhakim is one of many local people who have benefited from such projects.
For Chinese enterprises undertaking overseas BRI projects, engaging with the local people is a priority.
"A major principle is to allow local people to work on the project," said Wang, who is now director of China Railway Construction Corp Algeria. "When locals can't do it alone, Chinese workers should help them until they can do it on their own.
"Locals usually account for 80 percent of total employees," he added.
After the completion of each project, local communities will have not only a new road or a port, but also the education and training needed to move up the skills ladder and earn more.
By working alongside locals and passing on technology and skills, Chinese workers gain the locals' trust and recognition.
Yang Song, director of China Civil Engineering Construction Corp's foreign aid department, said: "People may not believe us at the beginning, but after we work together to finish a project, locals will develop trust in us, which is more precious than anything else. I believe people's hearts are connected, regardless of skin color or nationality."
The Belt and Road Initiative was emphasized in the report delivered by Xi Jinping to the 20th National Congress of the Communist Party of China on Sunday in Beijing.
"As a collaborative endeavor, the Belt and Road Initiative has been welcomed by the international community both as a public good and a cooperation platform," the report said.
As of July, 149 countries and 32 international organizations had signed cooperation documents with China under the BRI framework. More than 3,000 projects have been completed with an investment of nearly $1 trillion.
"Most of the participants are developing countries, and the BRI connects these countries to markets all over the world, not just to China," said Digby Wren, a political analyst at Deakin University in Melbourne.
According to estimates from the World Bank, transportation infrastructure projects under the BRI, if fully implemented, are expected to generate $1.6 trillion in benefits annually by 2030 — accounting for 1.3 percent of global GDP. Of these benefits, 90 percent will go to partner countries, with low-income and lower-middle-income countries being the biggest beneficiaries.
Wang Yiwei, a professor at the School of International Studies at Renmin University of China, dismissed as groundless the accusations by some of a "debt trap", saying that China values long-term economic and social benefits over short-term return.
"What China does is to give a chicken to you, and this chicken will lay eggs. Then there will be more chickens, and as a result, more eggs will be produced. And you will be able to repay the debt that resulted from buying the chicken," Wang said.
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China not an ace for Australian politicians
Bilateral relations were progressing smoothly until 2011, when then US president Barack Obama visited Australia and announced his "pivot to Asia" policy, signalling the future and current turbulence in Sino-Australian relations.
When Australia's Liberal Party coalition returned to power in 2013, China's economic growth rate had begun to moderate. This prompted the Liberal Party to recalibrate Australia's trade and investment with China and give preference to the security relationship with the United States. The Liberal Party assessed the mineral and energy sectors to be only marginally susceptible to economic pressure, as it believed China would require stable supply to sustain its growth targets.
However, in 2019, the Reserve Bank of Australia reported a slowdown in global trade, in large part, due to the Trump administration's trade policies with the US' major partners and the trade and tech war against China, both of which had dampened growth in Asia, and therefore, in Australia.
Following Scott Morrison's "surprise" victory in the 2019 elections, the Liberal Party sought closer alignment with US foreign policy objectives in the Asia-Pacific region and entrenched the role of fossil fuels in the economy, pursued deregulation, cut taxes and weakened labor market protections.
By 2020, as it sought to contain the economic fallout from the escalating novel coronavirus pandemic and Australia's first recession in 30 years, the Liberal Party began to hype the "China threat" narrative and joined the Anglo-American hysteria over the Taiwan question, which would lead to a formalization of the QUAD dialogue (Japan, India, Australia and US) and eventually the AUKUS alliance (Australia, United Kingdom and US).
In an effort to deflect voter attention from its mishandling of the pandemic, declining living standards, rising inflation, stagnant wages and under-funded aged care, the Liberal Party government adopted national security as its 2022 election platform. Morrison spoke of a new "arc of autocracy" between Moscow and Beijing and linked the Ukraine crisis to a potential conflict over Taiwan.
In fact, Australian Defense Minister Peter Dutton has said that it is "inconceivable" for Australia not to support the US in a future war over Taiwan and senior Liberal Party ministers have attacked the Labor Party's record on national security, arguing that China would prefer Anthony Albanese and Labor to win the federal election.
The statements were widely condemned, and prompted the former Australian Security Intelligence Organisation chief Dennis Richardson to say the Morrison government was seeking to create the perception of a difference between the major parties when none in practice exists.
A key finding of recent voter research has been the disparity between the Liberal Party's posturing on national security and the sentiments of the electorate. Sixty-one percent of Australian voters, in a recent survey, said the relationship with China ought to be carefully managed, while only 26 percent thought China was a threat to be confronted. And when asked which party would better manage the relationship, 37 percent said Labor, 28 percent said the Liberal Party coalition and 34 percent were unsure.
Significantly, the International Monetary Fund has lowered Australia's long-term growth rate, forecasting that the 2022 election would obscure news that living standards would decline for many years into the future.
More recently, the Ukraine crisis has led to an increase in oil prices, though they have dropped somewhat of late, increased the cost of living and hastened Morrison's decline in voter polls. Labor is now the preferred government over the Liberal Party－55 percent to 45 percent. Morrison's 23 percent lead as preferred prime minister over opposition leader Anthony Albanese in August 2021 had all but disappeared by March 2022.
If the polls are any guide, Albanese has understood that the relations with China are essential to achieving Labor's economic platform. While Albanese has referenced China's changed posture toward Australian imports as a key concern for Australian businesses, he has also highlighted China's "forward-leaning" attitude as the key reason for changes to foreign policy.
Labor's foreign policy is based on three principles: the alliance with the US, regional engagement, and support for multilateral forums. And Albanese has spoken of boosting defense spending beyond 2 percent of GDP should regional geopolitical tensions rise.
However, Albanese and his deputy Penny Wong's bipartisanship on Ukraine does not mean they have adopted Morrison's foreign policy toward India, China, Russia and/or the Association of Southeast Asian Nations. The main concern is that the US, and the Morrison government in particular, appear to have abandoned their refusal to support an "independent Taiwan".
A priority for Albanese will be to swiftly arrest the perception that to counter China, Australia has to re-prioritize its relations with the UK and the US at the expense of fostering regional collaboration. Labor's shadow foreign minister Penny Wong has already committed to appointing an ASEAN special envoy to forge closer relations with key regional capitals.
For Albanese to win the May election, he must not allow Morrison to smother the media conversation with alarmist narratives about Beijing, Kyiv and Taiwan. The focus must remain on falling wages, inflationary pressures on living standards, and an innovation policy that answers the requirements of both big businesses and small and medium-sized enterprises.
Finally, Albanese needs to make the important shift toward a more independent foreign policy focused on economic development and improved relations with China, ASEAN and the Regional Comprehensive Economic Partnership. Albanese and Wong will need to keep reminding voters that national security is not only about inflating external threats, but also about building a robust domestic industrial policy and a regionally collaborative trade policy.