Strong diplomatic relations between Cambodia and China have continuously boosted bilateral trade flows. In the first 10 months of 2024, total trade value between the two countries reached more than $12 billion, a 20% increase compared to the same period in 2023. 

According to the General Department of Customs and Excise (GDCE), from January to October, total trade between Cambodia and China amounted to $12.38 billion, marking a 23% increase from $10.07 billion year-on-year. 

China remains Cambodia’s largest trade partner, accounting for 27.46% of the country’s total international trade in the first 10 months of 2024, which stood at $45.06 billion.

Imports from China reached $10.95 billion, representing a 23.2% increase for the period, and accounting for approximately 88.46% of bilateral trade. In contrast, exports to China increased by 21.1% to $1.43 billion.

Cambodia's trade deficit with China is estimated at $9.52 billion, while the corresponding figure for 2023 was $7.71 billion.

Lim Heng, vice-president of the Cambodia Chamber of Commerce (CCC), told The Post on November 19 that the geographic location and the centuries-old historical ties between the two countries have been key driving factors for the continued growth in trade. 

He added that both governments have also been encouraging their investors to increase cooperation. 

Heng explained that China plays a crucial role in supplying raw materials to Cambodia, which are used in manufacturing before being exported to international markets.

He stated, “The size of trade between the two countries will continue to grow. China will continue to be an essential supplier of raw materials for Cambodia.”

He also mentioned that Cambodian goods are increasingly finding opportunities in the Chinese market, particularly agricultural products and machinery.

Regarding the Cambodia-China Free Trade Agreement (CCFTA), Heng emphasised that the agreement plays a significant role in boosting bilateral trade and attracting Chinese investors to Cambodia. 

He noted key exports to China include agricultural products, machinery, natural resources and certain minerals. Meanwhile, imports from China cover almost all categories, including food, spices, jewellery, construction materials, electricity, electronics, pharmaceuticals, vehicles and various raw materials.

Hong Vanak, an economist at the Royal Academy of Cambodia, stated that the growth in trade between the two countries is due to their strong diplomatic relationship, as well as the CCFTA and Cambodia's membership in the Regional Comprehensive Economic Partnership (RCEP). 

He noted that China is recognised as a major global supplier of raw materials and goods, and will continue to be a vital source for Cambodia, particularly for materials used in the production of machinery, which Cambodia then processes for export.

He remarked, “China has long been an essential source of raw materials or components for factories and enterprises in Cambodia. The volume of trade between the two countries will continue to rise in the future.”

Regarding exports to China, the economist confirmed that, as a developing country, Cambodia mainly exports agricultural products and natural resources.

To promote trade cooperation, the Ministry of Commerce and the private sector of Cambodia showcased 100 high-quality Cambodian products at the 7th China International Import Expo (CIIE) in Shanghai, China from November 5-10, with a total of 160 participating countries.

The ministry noted that these goods included rice, cashew nuts, travel accessories, geographical indication (GI) products, honey, coffee, dried fruits, tea, palm sugar and juice, packaged noodles and recycled plastic products.

In 2023, total trade between Cambodia and China reached $12.26 billion, a 5% increase compared to 2022. Cambodia exported goods worth $1.48 billion to China, marking a 19.2% increase, while imports from China were valued at $10.79 billion, a 3.3% increase, according to the GDCE.