ABSTRACT

Over the past 10 years, the relationship between Cambodia and China have been strengthened due to geographical conditions with the economic aids (concessional loans), investment, trade, tourism and banking. With China economic relation, Cambodia has boosted its economic power from Western sanctions, including the United States and the European Union. Around Cambodia’s economic growth, FDI inflows total $ 2155 million in 2017, that 24% from mainland China, 11% from Hong Kong. Cambodian largest investment source is China with investment total amount of US $ 860 million and accounting for 61% of total foreign investment.

However, this investment can make Cambodia’s mindset changes. The influence of Western ideology is also a factor, beside economic and socio-cultural factors, distorts the relationship between China and Cambodia. How these factors influence the relation? The goal of the research is seeking for the effect of Chinese investor, workers, peoples, and tourist on Cambodian society, and economy in order to find out the feedback from public on the Chinese investment. It will the keys for both government to harmonize and strengthen the relaitonship between Cambodia and China in the framework of BRI. The research objectives are the effect of Chinese investment on Cambodian society and economy.

This is a mixed research between qualitative and quantitative data which is base on Grounded Theory and Survey.

Key words: Investment, social disorder, development, and economic growth.

JEL: O10, O11, O43