Cambodia’s Sihanoukville has transformed into a casino hub due to significant Chinese investments, positioning it as a key site in the Belt and Road Initiative. While local officials welcome the economic growth, concerns over debt sustainability and dependence on Beijing arise. Optimism remains among business owners for further strength in the Chinese-Cambodian relationship amidst challenges.

The transformation of Cambodia’s Sihanoukville from fishing villages to a bustling casino city is largely attributed to substantial Chinese investments. As the primary investor and trading partner, China’s financial influx aims to bolster the strategic significance of the Gulf of Thailand port, a key component within the Belt and Road Initiative led by President Xi Jinping, who is expected in Cambodia soon.

Local government officials have embraced these investments, however, critics express concerns regarding the potential for unsustainable debts and heightened dependency on China. A Chinese tourist, Xiaofan, remarked, “Sihanoukville changes year-on-year… I came back and it was entirely a Chinese city. There are so many Chinese people.”

Moreover, the gambling scene in Sihanoukville attracts Chinese visitors, given the prohibition on gambling in mainland China. The ongoing support from Phnom Penh reflects a strong alliance with Beijing, recently highlighted by the inauguration of a naval base renovated by Chinese entities.

In pursuit of continued investment, Cambodia is proactive in inviting Chinese state-owned enterprises while often thwarting regional efforts to address China’s territorial actions in the South China Sea. Sihanoukville’s economic growth is partially evident in its notable GDP per capita of $4,000, bolstered by a Chinese-driven manufacturing hub, with provincial leaders optimistic about its potential.

Construction of luxury developments, like the Peninsula Bay shopping resort, demonstrates the rapid expansion, as a project representative expressed this initiative aims to “make Sihanoukville great again.” However, caution is advised regarding these investments, which have resulted in some struggling projects elsewhere.

Concerns include Sihanoukville becoming a “ghost city” filled with unoccupied buildings, as noted by Ou Virak, president of Future Forum, highlighting that significant portions of Cambodia’s debt are owed to China. Investments like the $2 billion expressway offer limited usage, while a new airport surpasses tourist expectations.

Despite strategic investments from Beijing, the potential for economic overdependence raises sovereignty and debt sustainability issues. Campaigned alongside scam centers targeting Chinese citizens, these circumstances prompt scrutiny. Nevertheless, local vendors, such as meat skewer seller Wang Guohua, remain positive, hoping for strengthened Chinese-Cambodian relations to yield benefits.

Sihanoukville epitomizes the complex dynamics of foreign investment, particularly from China, within Cambodia’s economy. While substantial Chinese funds have transformed it into a burgeoning casino and resort area, concerns regarding economic dependency, unsustainable debt, and potential sovereignty risks persist. The ongoing investments bring both opportunities and challenges for Cambodia as it navigates its relationship with Beijing amid regional sensitivities.

Original Source: www.iosconews.com

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