Bilateral trade between Cambodia and China saw a year-on-year increase of nearly 30% in the first two months of 2024, according to the General Department of Customs and Excise (GDCE).

Between January and February, trade between the two nations totalled $2.2 billion, up by 29% compared to $1.7 million in the same period of 2023. Cambodia exported goods worth $227.75 million to China, marking a 15% increase, while imports were valued at $1.97 billion, a 30.8% rise and accounting for almost 90% of total trade.

The Kingdom’s deficit for the period was $1.74 billion, an increase from the $1.31 billion logged during the same period last year.

China stands as Cambodia’s largest trading partner, as per the GDCE.

Hong Vanak, director of International Economics at the Royal Academy of Cambodia, attributed the consistent growth in trade volume between the two countries to strengthened diplomatic relations.

He also noted the significance of the Cambodia-China Free Trade Agreement (CCFTA) and both countries’ membership in the Regional Comprehensive Economic Partnership Agreement (RCEP).

Vanak highlighted China’s role as a principal supplier of raw materials and goods globally, stating that the world’s second-largest economy would continue to be a vital source for the Kingdom.

He said this was particularly true for raw textile inputs, which Cambodia processes into finished products for export to international markets.

“China has long been a major source of raw materials or ingredients for factories and enterprises in Cambodia. Trade volume between the two nations is expected to continue increasing in the future,” he remarked.

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Reporter: May Kunmakara
Publication date: 2o March 2024
Source: The Phnom Penh Post