Cambodia aims to double trade with China in 5 yrs

via CAAI

December 18, 2010PHNOM PENH, Dec 18 – Cambodia and China have pledged to double bilateral trade to US$2.5 billion (RM7.84 billion) in five years, driven largely by agriculture, mining and hydro power, the Cambodian government said, underscoring their tightening ties.

Cambodia’s Foreign Minister Hor Namhong made the comment yesterday after Prime Minister Hun Sen returned from a visit to China, noting bilateral trade was now US$1.1 billion and China had agreed to import more Cambodian rice and other products.

He also said China had promised a US$300 million loan for construction of two national roads and an irrigation project in Cambodia and that another 12 deals were signed during Hun Sen visit’s worth around US$293 million, mostly infrastructure related.

Chinese investors are increasingly active in Cambodia, pledging to invest US$8 billion in 360 projects in the impoverished Southeast Asian country in the first seven months of this year, mostly in power and agriculture.

Cambodia signed a spate of business deals with China in December last year during a visit by Chinese Vice-President Xi Jinping, days after defying international pressure by sending back to China 20 ethnic minority Uighur asylum-seekers.

Beijing is Cambodia’s largest source of foreign aid, providing about US$600 million in 2007 and US$260 million in 2008, helping to build roads, dams and other infrastructure. China also gives military aid. – Reuters