Research On The Deepening Development Of Trade Between China And Cambodia

Located in the heart of the southern tip of the Indo-China Peninsula,Cambodia has a very unique geographical location and it is an important gateway to the global market in Southeast Asia.The friendly exchange between China and Cambodia has a long history.Since the establishment of diplomatic relations in 1958,these two countries have established stable cooperative relations in various fields such as politics,economy,security,culture and science and technology.In particular,they have achieved rich results in the field of trade.Since the outbreak of the global financial crisis in 2008,the trends of deglobalization,trade protectionism and unilateralism are growing in intensity.The new round of reconstruction of global value chain led by western multinational corporations is becoming acute.The Sino-Cambodian trade relationship driven by the supply and demand of intermediate goods are facing multiple challenges.In this context,innovating trade-driven methods,seeking new impetus for trade developmentand promoting the deepening of trade development are becoming more and more concerned by the Chinese and Cambodian governments,they are not only the key link to help Sino-Cambodian comprehensive strategic partnerships reach a new level,but also an objective requirement for building a strategically Sino-Cambodian community of common destiny.Based on this idea,the author first examines the process of Sino-Cambodian trade development.From the perspective of the trade scale and the product structure,the author analyzes the status and characteristics of Sino-Cambodian trade development from 2002 to 2017,and points out that Sino-Cambodian economic and trade cooperation mechanism is abundant,the trade relations between China and Cambodia are close and the trade complementarity between China and Cambodia is remarkable,but there are also some problems such as the scale of the trade between China and Cambodia is small,the structure of the trade between China and Cambodia is imbalance,the growth rate of the trade between China and Cambodia is slowing down,the products of the trade between China and Cambodia are single and the trade competition between China and Cambodia becomes more intense.Secondly,from the perspective of demand for imports,competitiveness of products and adaptability of supply and demand,the author uses the constant market share model(CMS)to empirically study the driving and restricting factors of Sino-Cambodian trade development,and combines theoretical analysis to point out the key constraints to the expansion of Sino-Cambodian trade and the improvement of Sino-Cambodian trade structure based on China’s insufficient import demand for Cambodia,the declination of China’s export competitive advantage to Cambodia,and the two"ceilings"of total volume and products structure for Cambodia’s export to China.Thirdly,the author puts forward China’s direct investment in Cambodia as a new impetus for the deepening development of Sino-Cambodian trade with the guidance of the cause of the existing problems in the development of Sino-Cambodian trade,and explores the development status of China’s direct investment in Cambodia,then using the fixed-effect variable coefficient panel model to empirically analyze the trade effect of China’s direct investment in Cambodia combined with the trade effect mechanism of outward foreign direct investment.Empirical studies show that China’s direct investment in Cambodia has effectively expanded the total trade volume between China and Cambodia,and it has a strong export-induced effect.However,its reverse import effect is not significant,which is closely related to the small scale of China’s direct investment in Cambodia,the concentration of investmen fields,the lack of coordinated planning and the poor investment soft environment.Finally,combined with the existing shortcomings of China’s direct investment in Cambodia,the author proposes strategies and suggestions for the deepening development of Sino-Cambodian trade driven by China’s direct investment in Cambodia from both the government and industry levels.From the perspective of the government,it is necessary for government to give full play to the role in overall planning and build a suitable soft environment for investment.First,grasp the opportunities for investment promotion in the existing economic and trade cooperation mechanism;second,introduce fiscal and tax support policies and optimize fiscal and taxation services;third,improve the legal guarantee system for China’s direct investment in Cambodia;fourth,deepen monetary cooperation and improve financial service.From the industrial perspective.it is necessary to speed up the adjustment of the layout of investment and focus on broadening the field of investment.First,focus on labor-intensive industries and broaden the choice of industry of direct investment.Second,build a closely related infrastructure investment pattern based on serving the people’s livelihood.Third,take the overseas cooperation zones as the starting point to promote the comprehensive and integrated development of trade,investment and capacity cooperation.