Chinese Loan Not a Debt Trap, Says Chinese Embassy

• 12 April 2021
• Local News
• 3166 Views

The Chinese Embassy in Cambodia yesterday issued a letter stating that China has no intention of setting up a debt trap or seizing Cambodia’s sovereignty. However, the Chinese loans rather have helped promote development in Cambodia to a large extent.

The letter was issued in response to RFA’s recent allegations that the Chinese loans to Cambodia violated human rights and would put Cambodia in a debt trap.

The Chinese embassy letter explained the following three main points:

First, the Chinese loans do not violate human rights. Instead, these loans have helped restore the economy, infrastructure and livelihoods of local people. Through loans and aid, China has thus far helped build over 3,000 kilometres of roads, eight bridges, 25 rural roads, 1,810 wells, and 127 ponds nationwide.

Second, Chinese loans to Cambodia are not a debt trap. In the past, China has never used loans as an excuse to interfere in the internal affairs of any country. China also never uses loans to put pressure on any countries’ sovereignties. Besides, no country has also thus far suffered from China’s loans.

Third, China has no intention of establishing a military base in Cambodia. However, the past joint military operations are only to protect regional stability and security.

Regarding the issue of Chinese military bases in Cambodia, a recent article by The Diplomatasserted that Sihanoukville’s Ream bay is not the ideal strategic spot for a Chinese naval base. The article was written by local analyst and researcher Chen Heang where he provided four key arguments to support his claim. (Read more)

Regarding the debt trap, similarly to the Chinese embassy, the Cambodian government has also repeatedly claimed that Cambodia will not fall into any debt traps given the fact the current debt is comparatively low and Cambodia manages the loans very well. (Read more)

• Analysis