The Strategy Of The Industrial Chain On Rice Trade Development Between Cambodia And China

Cambodia is rich in land and natural resources. It also has suitable climate, abundant rainfall therefore it is suitable for growing rice. Cambodian economy depends mainly on rice production and exportation. The Cambodian government designed the strategy Promotion of Rice Production and Rice Export Policy, in order to make Cambodia achieve the target of exporting one million tons of rice in 2015, and also make Cambodia become the world’s fifth ranked largest rice exporter in the next few years.However, due to the poor agricultural infrastructure and techniques, it is not possible to make Cambodia produce the quality and quantity of rice to meet the world’s high standard market demand. In the dry season, there are not enough irrigation systems to support rice production. Coupled with that is the lack of modern machinery to process the rice to meet the standards of the world market. As a result, a large number of rice is illegally smuggled into Thailand and Vietnam to be processed and thereafter exported to the world market. This problem has a strong effect on Cambodia’s rice export targets.This paper uses primary source research data from Cambodia and China. It particularly introduces the basic situation of Cambodia, such as politics, economy, foreign relation,foreign trade especially foreign rice trade and highlights the Cambodia’s domestic rice industry chain. This paper also describes the infrastructure of Cambodia’s rice industrial chain which is still outmoded, and which seriously affects Cambodia’s rice exports. In order to promote Cambodia’s rice industrial chain and rice exportation, Cambodia has to construct and develop rice industrial facilities and infrastructure.The theories of the Production Factor Endowment, International Trade Economics,International Production Compromise, David Ricardo’s Advanced Comparative, etc are raised in this paper to do the basic analysis of the Cambodia’s rice industrial chain,Cambodia’s rice trades current situation, and to promote Cambodian-Chinese rice trade.This analyzes six major problems existing in the Cambodian rice trade and raises four major kinds and sixteen suggestions to enhance Cambodian-Chinese rice trade.According to the suggestions made in this paper, Cambodia should cooperates with the nearest Chinese’s region departments by using the Chinese strategy The Belt and Road Initiatives to enhance and develop the construction of the rice industry chain and to strengthen the rapid growth of bilateral trade.