How China Has Taken Over Cambodia Bit By Bit Through Shadowy Chinese Firms, Turning This Once BackPack Haven Into A Cluster Of Unfinished And Shady Projects
Cambodia, once celebrated as a backpacker's haven known for its serene beauty and cultural richness, has undergone a drastic transformation in recent years, largely driven by extensive Chinese investment and development projects. These initiatives were initially promoted as vehicles for economic growth and modernization, promising a brighter future for the nation. However, beneath the surface of progress lies a complex tale of disruption, environmental degradation, social unrest, and economic dependence.
China-funded development projects in Cambodia have been met with mixed reactions, with some seeing them as an opportunity to improve the country’s infrastructure and others expressing concerns about Cambodia’s increasing economic dependence on China.
As these projects unfold, the influence of shadowy Chinese firms is becoming more pronounced, turning Cambodia, once known as a backpacker’s haven, into a landscape filled with unfinished and questionable ventures.
China And It’s Expanding Shady Footsteps
In the lead-up to Cambodia’s national elections, Prime Minister Hun Sen announced a major infrastructure project financed by Beijing: an expressway connecting Phnom Penh to Bavet on the country’s eastern border with Vietnam.
This 135-kilometer road comes with an estimated price tag of $1.37 billion and follows the opening of a $2 billion China-funded expressway connecting Phnom Penh to Sihanoukville, Cambodia’s major ocean port city, just last year.
Hun Sen expressed confidence in these projects, stating, “The expressways will be done before I die.” However, this reliance on Beijing’s economic support has raised concerns about Cambodia’s growing dependence on China.
Chhay Lim, a visiting fellow at the Center for Southeast Asian Studies at the Royal University of Phnom Penh, highlights that China-funded infrastructure projects not only offer public benefits but also play a vital role in bolstering the legitimacy of Cambodia’s ruling regime.
This form of legitimacy, driven by economic performance, gains credibility through the positive socioeconomic impact of Chinese investments, particularly as elections approach; however, this positive image has been marred by the lack of a credible opposition challenger in Cambodia’s recent elections.
China’s financing of these expressway projects follows a “build-operate-transfer” (BOT) model, in which a Chinese company is repaid through ongoing revenue before ultimately transferring control to Cambodia. While this model aims to alleviate Cambodia’s debt burden, critics argue that it leaves the Cambodian people beholden to Chinese investors rather than serving their best interests.
According to Cambodia’s Ministry of Transportation, under the BOT agreement, the Chinese-state-owned firm CRBC will collect tolls for 50 years after the expressways open. These expressways could be part of a larger network as China expands its global influence through the Belt and Road Initiative (BRI); thus, the prospect of more Chinese-funded projects in Cambodia has raised concerns about the country’s economic stability and sovereignty.
Under China’s Debt
Despite criticisms, Prime Minister Hun Sen remains unapologetic about welcoming Chinese investments that come without Western requirements regarding democracy and human rights. Nevertheless, Cambodia’s reliance on Chinese largesse has raised concerns about the country’s ability to manage its debt and protect its interests.
China’s economic influence extends beyond infrastructure projects, with the Dara Sakor Seashore Resort standing as an example of one of the world’s largest tourism projects.
Initiated by a Chinese company, this self-contained tourist city was to boast of an international airport, deep-sea port, power stations, hospitals, casinos, and luxury villas; however, despite its grand vision, the resort remains unfinished and has severely impacted both the environment and local communities.
Too Big A Challenge
China’s economic footprint in Cambodia has grown significantly, with the country now providing half of all direct investment and most foreign aid.
Cambodia’s participation in the Belt and Road Initiative has further solidified its partnership with China; while Chinese investments in Cambodia have brought little benefits, many are rushed and poorly planned, leading to negative consequences.
The development of Dara Sakor, in particular, highlights Cambodia’s approach to economic growth, characterized by generous concessions to favoured cronies and foreign companies, a model that often lacks transparency and fails to prioritize the well-being of local communities and the environment.
What Is At Stake
As Chinese investment continues to pour into Cambodia, questions persist about the long-term consequences of this growing economic partnership.
Critics argue that Cambodia should prioritize deals that benefit its citizens rather than allowing Chinese investors to control key infrastructure for extended periods.
From Tourist Haven to Ruins
Once a vibrant backpacker’s haven, Cambodia’s beauty has dramatically transformed due to extensive Chinese investment and development projects. While these projects promised economic growth and modernization, they have left behind a trail of disruption, environmental degradation, and social upheaval, turning some of Cambodia’s tourist destinations into ruins.
Sihanoukville’s Decline
Sihanoukville, a picturesque coastal town known for its pristine beaches, was one of the first places to experience the impact of Chinese investment.
The rapid influx of Chinese-backed casinos and construction projects disrupted the town’s peaceful charm; towering, half-finished buildings now dominate the skyline, and a crime wave followed in the wake of the casino boom. At the same time, the local infrastructure struggled to keep up with the sudden demand, resulting in environmental strain and deteriorating living conditions for residents.
Dara Sakor Seashore Resort
The Dara Sakor Seashore Resort, one of China’s grandiose ventures, was envisioned as a self-contained tourist city. However, despite its lofty promises, the resort remains largely unfinished.
An airport lies incomplete, and a lone casino stands amidst construction sites and unmade roads; moreover, the resort has negatively impacted the region’s natural environment, with primary forests dwindling and thousands of residents forced to abandon their homes, a disruption to the ecosystem that has led to long-lasting damage.
Land Displacement and Social Unrest
Chinese projects have often resulted in the displacement of local communities, as large tracts of land are handed over to foreign investors. The continuity of displacement has led to social unrest and protests by affected communities who have lost their homes, livelihoods, and cultural heritage.
Moreover, the compensation offered to these displaced families is often inadequate, thus leaving them economically marginalized.
Economic Dependence
Cambodia’s growing economic dependence on China is a double-edged sword; while Chinese investments have fueled infrastructure development, they have also raised concerns about Cambodia’s sovereignty and economic stability.
Cambodia’s reliance on China leaves it vulnerable to economic pressures and potential debt traps, as China asserts its influence through investments and loans.
Environmental Degradation
Many of the Chinese-backed projects in Cambodia have proceeded without proper environmental impact assessments, which has resulted in massive deforestation, pollution, and damage to fragile ecosystems.
The environmental costs of these projects are often overlooked in the pursuit of economic growth.
Impact on Tourism
Cambodia’s reputation as a tourist destination has suffered as a result of the disruptive development.
The charm and natural beauty that once drew travellers to the country have been overshadowed by construction sites, unfinished buildings, and environmental degradation.
Tourists seeking tranquil and unspoiled experiences have been deterred, impacting Cambodia’s tourism industry.
The Last Bit, As Cambodia grapples with the consequences of extensive Chinese investment, the nation’s journey from tourist haven to ruins is beyond repair; while economic growth and modernization are vital aspirations for any country, the true cost of development must not be ignored.
The displacement of communities, environmental degradation, and social unrest, not to mention the debt trap, is too high a cost that the citizens of Comodia will have to pay for eons.
