In the 1980s, the clouds of the Cold War finally dissipated. The economic systems of various countries were developing towards internationalization, and many countries began to carry out economic market-oriented reforms. Some developing countries have vigorously developed their own economies by introducing foreign investment, and Cambodia is one of them. Before 2016, Cambodia was recognized as a low-development country by the World Bank. In order to change its past poverty, Cambodia leased 20% of its coastline to China for 99 years. What are the benefits of this deal to China?
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1. Low-development countries
In March 2015, the United Nations once again revised the standards for low-development countries. Countries with per capita income below US$1,035, low population quality, and relatively fragile economies will be among them. The mainstay of Cambodia's economy is agriculture. The country lacks industrial infrastructure and naturally cannot escape the title of a low-development country. With the help of China, Cambodia has gained opportunities for rapid economic development. On July 1, 2016, Cambodia completely broke away from the ranks of underdeveloped countries.
In fact, as early as the 1st century AD, Cambodia had already established a unified dynasty. It was also an ancient civilization. However, Cambodia’s land area is only about 180,000 square kilometers. Due to limitations of territory and resources, it is difficult to develop and grow. In 1863, Cambodia came under French colonial rule. In September 1940, it was attacked by Japan again, and it was not until 1953 that it officially declared independence. After successful independence, Cambodia fell into civil strife, and some pro-American forces launched a coup.
In 1993, Cambodia ended its civil strife and began to develop its domestic economy. Due to years of war, the people in Cambodia are in dire straits, the industrial base has been completely destroyed, and agriculture can only be developed. 20% of Cambodia's entire territory is agricultural land, and about 78% of the country's people are farmers. There is a very narrow coastal plain to the west. In order to improve the economy, the Cambodian government implemented the " Open Skies " policy in 2000 to encourage foreign airlines to open routes to Cambodia's tourist attractions.
In 2015, China began to implement the One Belt, One Road plan, and Southeast Asia is a key area of the plan. Both land and sea channels pass through Southeast Asia, so China attaches great importance to diplomatic relations with Southeast Asian countries. If Southeast Asia is the core region, then Cambodia is the most important strategic fulcrum. Among the ten ASEAN countries, Cambodia lacks the most infrastructure construction. This means that China's infrastructure team has the most development prospects in Cambodia, because the people there need roads and transportation sites the most.
Secondly, Cambodia has always supported China’s various foreign policies and hopes that Chinese companies can come to invest. Kampot Province, located in southern Cambodia, is rich in fishery resources and has a long coastline of 94 kilometers. In the 19th century, Kampot was Cambodia's largest port. However, after the invasion of foreign enemies, it was difficult for Kampot Port to regain its former glory. Therefore, the Cambodian government hopes that China can contribute funds to help develop Kampot Port.
In addition, On February 9, 2020, the Cambodian government and Chinese companies reached a deal. Cambodia will provide 99-year rights to use 20% of the domestic coastline to Chinese companies, and China will need to pay an annual rent of US$1 million. This coastline is located in Koh Kong Province in the southwest of Cambodia. It borders Thailand to the northwest and has good development prospects. The Cambodian government is suffering from financial constraints and hopes that China can help develop it.
2. China assists Cambodia
At present, Cambodia has three major international ports, namely Sihanoukville Port , Koh Kong Port and Phnom Penh Port. However, in these three ports, the deepest part of the sea does not exceed 9 meters, so large ships cannot berth. However, the water depth in the area where Kampot Port is located exceeds that of these three major ports. China took decisive action to help Cambodia build Kampot Port. After the construction of is completed, Kampot Port will become Cambodia's largest trading port and is expected to be able to accommodate merchant ships with a displacement of 50,000 tons.
First, China needs to clear the channel that has been blocked for many years in Kampot Port.The first phase of the project has a volume of 1 million cubic meters and is expected to bring 1 million square meters of land to Cambodia. With such a large area, is equivalent to building 140 football fields on the sea, moving the coastline forward by 4 kilometers. China cutter suction ship can clean about 3,500 cubic meters of sediment per hour and can fill 70 containers. The cutter suction ship can work 20 hours a day to help Cambodia develop Kampot Port as quickly as possible.
When Chinese crews were dredging the river on the sea, Cambodian people were not idle, helping to lay pipelines on the shore. These pipelines transport sediment to designated reclamation areas. The Cambodian workers are very happy. believes that Chinese companies treat them very well, cooperate very well with each other, and can complete the work efficiently and quickly. Working with the Chinese crew is a pleasure. However, in addition to building ports, Chinese companies will also provide Cambodia with a large number of employment opportunities.
With China’s assistance, Cambodia’s economy is taking off rapidly. Even Cambodian people who have not received higher education already know the meaning of the Belt and Road Initiative. They are very grateful to China for helping to build infrastructure, and believe that China will contribute to Cambodia's future prosperity. With the precedent of Kampot Port, the Cambodian government can boldly hand over 20% of the coastline to Chinese companies. While China pays one million in annual rent, it will also build various infrastructure.
The coastline leased by the Cambodian government is located in Koh Kong Province. China plans to invest US$3.8 billion to build an international resort in the area. After the resort is completed, an airport and port will also be built. Now that China has built a 3,400-meter-long airport runway, Koh Kong Province is about to welcome tourists from all over the world. Before the construction of the resort centre, the economic mainstay of Koh Kong province was fishing. The economic cooperation plan launched by and Cambodia will allow China to add a new strategic port.
3. Breaking the resource transportation dilemma
Although China has a large number of oil fields in the South China Sea and northwest regions, China, which is in the stage of rapid development, still needs to import oil from other countries. So Saudi and Iran etc. A large amount of oil is supplied to China every year. China and Middle East Oil-producing countries are separated by countless countries, and it is difficult to lay oil pipelines. Generally, Middle Eastern countries will transport oil to China by sea. The shipping route will definitely pass through Malacca .
Malacca is located between the Malay Peninsula and Sumatra . Countless merchant ships pass through here every year. Malacca is the maritime lifeline of Asian countries. All oil exported from the Middle East to Asia will first pass through the northern Indian Ocean, pass through Malacca, and then reach the South China Sea . The United States has long revealed its coveting of Malacca, but Southeast Asian countries have not handed over control of Malacca. Therefore, the United States can only settle for the next best thing and build a military base in Changi, Singapore.
If an Asian country goes to war with the United States, the United States will quickly dispatch a fleet to inspect passing ships in the waters near Malacca. As long as a hostile oil tanker is found, the United States will intercept it. China's maritime oil transportation routes also need to pass through Malacca. Today, as Sino-US relations become increasingly tense, it is difficult to guarantee that the United States will not set up an interception network near Malacca. Therefore, China needs to break the resource transportation dilemma. Cooperation with Cambodia will undoubtedly change the status quo and help break the interception network set up by the United States.
Cambodia is located north of Malacca. If China can build a port here, it will help protect oil transportation routes. Because the port in Cambodia is closer to Malacca. In the event of an emergency, such as the interception of a Chinese oil tanker, the Chinese navy can obtain supplies from the port built in Cambodia. can not only arrive at the sea area where the incident occurred as soon as possible, but can also operate for a long time to prevent the logistics transportation routes from being invaded by enemy forces. The security of China's oil transportation lines will be unprecedentedly improved.
This is similar to the United States building a military base in Changi .It’s just that the United States is trying to fight against hostile forces, while China is just trying to protect transportation lines from being invaded. Cambodia is also willing to cooperate with China. After all, China has sufficient experience in infrastructure construction, and China is implementing the One Belt, One Road plan to help Southeast Asian countries develop their economies. Through this cooperation, Cambodia can change its past poverty, while China can break the resource transportation dilemma and make maritime lifelines safer.
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