PHNOM PENH: As economic relations between Cambodia and China continue to deepen, the two nations are exploring the possibility of establishing a free trade zone.
This potential development was highlighted during a yesterday meeting between Deputy Prime Minister and First Vice President of the Council for the Development of Cambodia, HE Sun Chanthol, and a delegation led by Mr. Wei Keliang, Chairman of Xiamen Municipal Committee of the Chinese People’s Political Consultative Conference (CPPCC).
Deputy Prime Minister Chanthol expressed gratitude for China’s enduring support of Cambodia’s development, emphasizing the strong bilateral relationship that has flourished over the past 66 years. He underscored the potential for enhanced cooperation in various sectors, including trade, investment, and tourism.
Chairman Wei Keliang showcased Xiamen City’s economic prowess as a coastal city and special economic zone, expressing enthusiasm for the newly established sister city relationship between Sihanoukville and Xiamen. He emphasized the potential for collaboration in port development, coastal management, and tourism.
Building on these positive developments, Deputy Prime Minister Chanthol proposed the exploration of a free trade zone to further stimulate economic growth and investment between the two countries. He also suggested organizing business matching forums to facilitate trade and investment opportunities.
The potential establishment of a free trade zone between Cambodia and China would significantly enhance market access, reduce trade barriers, and attract foreign investment. This strategic move aligns with both countries’ economic development goals and underscores their commitment to strengthening bilateral cooperation.
Sihanoukville and Xiamen city of the People’s Republic of China have formalized a sister city alliance, aiming to strengthen bilateral relations and cooperation across various sectors. According to the AKP, the Letter of Intent for Friendly Exchanges between the two regions was inked on August 19 in Sihanoukville.
The signing ceremony was graced by Provincial Governor H.E. Mang Sineth and visiting Mr. Wei Keliang, Chairman of Xiamen Municipal Committee of the Chinese People’s Political Consultative Conference (CPPCC).
Both Governor Mang Sineth and Mr. Wei Keliang expressed their satisfaction with the longstanding friendship and robust cooperation between Cambodia and China.
They exchanged views on the development prospects of their respective jurisdictions. Given the similarities in geography between the coastal Preah Sihanouk province and the port city of Xiamen, the two regions have already established collaborative efforts in coastal and port management.
To date, Preah Sihanouk province has forged partnerships with 18 Chinese provinces and cities, including Jiangsu, Hainan, Guizhou, Nanning, and Shenzhen.
China remains the dominant investor in Cambodia, contributing 68% of the total investment capital. This strong economic partnership is underpinned by bilateral trade agreements and the Regional Comprehensive Economic Partnership (RCEP).
Cambodia attracted a staggering US$3.25 billion in fixed-asset investment during the first half of 2024, a 195% increase compared to the same period last year.