China’s Foreign Investment
Korea
22.5
10.3
24.1
14.9
13.3
31.4
12.1
19.6
5.6
Countries China
2002 5.7
2003 5.6
2004 32.5
2005 46.6
2006 53.2
2007 92.4
2008 127.9
2009 67.1
2010 47.5
Japan
105.6
101.2
101.8
111.7
103.7
122.1
144.6
53
26.3
EU (including UK)
108.2
114.7
107.1
130.6
156.1
171.4
201.7
191.5
126.3
UN and 191.4 Multilateral aid
193.4
164.8
187.5
251.2
191.4
297.4
202.9
138.9
Source: The Cambodia Aid Effectiveness Report 2008, prepared by the Cambodian Rehabilitation and Development Board of the Council for the Development of Cambodia for the Second Cambodia Development Cooperation Forum (CDCF), November 2008, p. 9.
According to the United States Congressional Research Service, China has become the “primary economic patron” of Cambodia (Lum, Morrison, and Vaughn, 2008). Its investments in Cambodia have risen exponentially with over 3,000 companies investing in natural resources, agriculture, textiles, and tourism. Information on the nature on Chinese firms operating in Cambodia is scarce. Dr. Kao Kim Houn, Secretary of State, Ministry of Peace and International Cooperation, indicated in an interview with the author that the Cambodian government sometimes does not know whether a Chinese firm is a state-owned or a private entity (Phnom Penh, January 23, 09). However, it should be noted that in Cambodia Chinese companies that invest in critical natural resources, construction and hydropower plants are state owned, a pattern that reflect China’s industrial investment in the developing world and in Africa and Southeast Asia in particular (Wang, 2002). In Cambodia these key state-owned companies include Sinohydro Corporation, Chian Yunan Corporation for International Techno-Economic Corporation, China Heavy Machinery Corp., China Southern Power Grid Company, China National Offshore Oil Corporation (CNOOC), Guangdong Chenguan Enterprise Investment Group, and China National Machinery and Equipment Import & Export Corporation (Middleson, 2008a; Global Witness, 2009; Middleson, 2008b; Barney, 2005). Anecdotal evidence shows that private Chinese companies also conducted trade in Cambodia and invested in various sectors of Cambodian economy such as restaurants, tourism, gambling, and fitness club. Chinese investment in Cambodia climbed from just 17 million or 1.3 percent of total domestic and foreign registered capital and fixed assets in 1994 to 688,737,099 million or 43.12 percent of total domestic and foreign registered capital and fixed assets in 2005 Peace and Conflict Studies • Volume 16, Number 2 - 70 -