China is Cambodia's largest trading partner. (Photo : Getty Images)
President Xi Jinping went to Cambodia as part of his tour of Asia and the Indian Subcontinent. He met with Prime Minister Hun Sen and other Cambodian leaders to discuss trade and other issues.
During the president's visit, companies from the two countries signed eight trade deals valued at $62 million on Tuesday in Phnom Penh. The Ministry of Commerce facilitated the agreements and they state willingness to buy Cambodian cassava starch and granite materials.
China is the biggest trading partner of Cambodia. Trade from China totaled to 4.4 billion last year.
According to cabinet chief Keo Piseth, "Leaders of both countries have worked to build the relationship, which has approached a high point we have never seen before."
The Chinese government sees Cambodia as a strategic partner for transportation and the ancient maritime Silk Road connecting East and West, according to Xiong Bo, China's ambassador to Cambodia.
Analysts agree that the partnership between the two countries is strategic and will produce good results.
Cheunboran Chanbore, a researcher at the Institute for Strategic Studies of the Australian National University, wrote, "Economically, China plays an increasingly important role in the socio-economic development of Cambodia as its primary trading partner, the largest source of foreign direct investment, and top provider of development assistance and soft loans."
He added, "Moreover, Cambodia will reap enormous benefits from new Chinese initiatives such as the Maritime Silk Road and the Asian Infrastructure Investment Bank."
The researcher believed that the relationship between China and Cambodia is also dependent on the relationship between Vietnam and China. Cambodia has received the cold shoulder from Vietnam due to the pressing issue of the South China Sea.
Chanbore elaborated, "While the reasons for the deterioration of Cambodia-Vietnam relations remain uncertain, it is certain that the more perceived unease or threat Phnom Penh has from its neighbors, the closer Cambodia will grow to China. This explains Phnom Penh's inconsistency on the South China Sea, with its latest position actually that of Beijing."
