Guangxi province in China and the Kingdom of Cambodia’s strategic geographic locations have positioned them as gateways for imports and exports for the ASEAN region.
With Guangxi serving as the most convenient “south gate” for China to access Cambodia and ASEAN, both regions prioritize constructing cross-border industrial and supply chains to foster economic cooperation.
ASEAN markets accounted for 47.6 percent of Guangxi’s foreign trade value in 2021, an increase from 40.9 percent in 2012. This highlights the importance of close economic ties between Guangxi and ASEAN, with ASEAN remaining Guangxi’s top trading partner for 22 consecutive years.
Moreover, the trade volume between Cambodia and China surged to nearly $11.2 billion in 2021, recording a remarkable 38 percent growth compared to the previous year. China has become Cambodia’s largest export market, while Cambodia’s imports from China amounted to $10.4 billion.
Bilateral trade volume between Cambodia and Guangxi amounted to 1.970 billion yuan in 2022, an increase of 88.2 percent from the previous year while exports from Cambodia to Guangxi were worth 110 million Yuan, an increase of 85.3% during the same period, and two-way trade between the two reached 1.05 billion yuan ($166 million) in 202, up 63.8 percent year-on-year.
In 2022, China was Cambodia’s largest export market, with exports totalling $1.24 billion, representing 5.5% of Cambodia’s total exports.
During the same period, Cambodia’s imports from China amounted to $10.4 billion, accounting for roughly 34.1% of Cambodia’s total imports.
Cambodia’s trade with China has reached $7.09 billion in the first seven months of 2023 Cambodia’s exports to China amounted to more than $814.73 million, an increase of 16.2 percent, while imports from China amounted to more than $6.27 billion, an increase of 0.14 percent.
Trade between Cambodia and mainland China is expected to reach over $12 billion by the end of this year.
China is the largest trading partner of Cambodia, followed by the US, Vietnam, Thailand, and Japan from January to July 2023.
China is also the largest source of foreign investment in Cambodia, with approximately $700 million in investments achieved in the first half of 2023, accounting for nearly 65 percent of all of Cambodia’s foreign direct investment
China also aims to increase its imports of quality products from ASEAN countries, aiming to purchase up to $150 billion worth of agricultural products by 2027. This further demonstrates the deepening economic cooperation between Guangxi, ASEAN, and Cambodia.
Overall, China-ASEAN bilateral trade has bucked the negative trend caused by the pandemic, jumping from $641.5 billion in 2019 to $975.3 billion in 2022.
China’s foreign trade with ASEAN countries grew by 1.6 percent year-on-year to 4.11 trillion yuan ($ 566.89 billion) in the first eight months of 2023, accounting for 15 percent of the country’s total trade value.
Guangxi province’s strategic location and its strong cooperation with Cambodia have positioned both regions as crucial gateways for ASEAN trade and cooperation. The CCFTA and other trade agreements and initiatives have fostered economic growth, investment, and enhanced logistics between China, Cambodia, and ASEAN. With growing bilateral trade volumes and increasing investment, the future holds great promise for further mutually beneficial regional collaboration.
Source: Khmer Times
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<p>Time: 2024 By: Ministry of Industry and Trade</p>
