Kingdom-China trade touches nearly $14B
Kingdom-China trade touches nearly $14B
Trade volume between Cambodia and China soared to nearly $14 billion in the first eleven months of 2024, an increase of 24 percent compared to the same period last year, according to a report from the General Department of Customs and Excise of Cambodia (GDCE) released on Tuesday.
GDCE’s trade data showed that bilateral trade volume between Cambodia and China reached $13.76 billion, up 24.2 percent compared to $11.07 billion in the same period last year.
Cambodia’s export value to China was $1.6 billion, an increase of 22.3 percent compared to the same period last year, while Cambodia’s imports from China were worth $12.15 billion, up 24.5 percent.
Penn Sovicheat, Secretary of State and Spokesman for the Ministry of Commerce (MoC), attributed the increase in trade volume due to China’s launch of in-depth reforms and the strong relations between the two nations.
“The increase in trade volume is the result of President Xi Jinping’s deepening reforms and policies, which aim to integrate the culture and people of the region,” he said.
“As a developing country like Cambodia, this creates market opportunities, develops infrastructure, and generates opportunities to welcome Chinese investors.”
He emphasized that through China’s Belt and Road Initiative, Cambodia has gained access to broader markets through the Cambodia-China Free Trade Agreement, signed in 2022, and the Regional Comprehensive Economic Partnership (RCEP) Agreement, enabling more Cambodian exports and goods to be sold in the Chinese market.
At the same time, the Royal Government of Cambodia has a clear plan to promote economic development, aiming to transition from a least developed country to a middle-income country by 2030, and to become a high-income country by 2050. He added that, “While Cambodia is on track to achieve this goal, it requires close attention to the Chinese market, as China is a large market with substantial purchasing power.”
Speaking to Khmer Times, Lor Vichet, Vice-President of Cambodia Chinese Commerce Association (CCCA), said, Cambodia’s trade situation is improving with steady growth. Trade tensions between China and the United States have also contributed to boosting Cambodian trade.
The US policy under the new presidency to come into effect in January 2025 may impose additional tariffs on Chinese goods, he observed.
As a result, some Chinese companies have relocated their investments from China to Cambodia to take advantage of US preferential tariffs.
“To reduce the trade deficit, Cambodia needs to focus more on the agricultural sector to increase exports, leveraging its abundant agricultural resources, favourable climate, and strategic location for export destinations.
“Cambodia should also strengthen its skilled workforce to attract more investment,” he added.
