The Belt and Road Initiative in Cambodia: Costs and Benefits, Real and Perceived

China is Cambodia's largest bilateral donor, lender, investor, and trading partner. Economic relations have been strengthened by Cambodia's active participation in the Belt and Road Initiative (BRI). Participating in the BRI has costs and benefits. It has addressed infrastructure deficits, reducing trade and transport costs, supporting productivity and economic growth. This has improved living conditions and reduced poverty. On the negative side, there are concerns over environmental decay, land grabbing, and associated losses in livelihoods. Benefits appear to outweigh costs in Cambodia. Nevertheless, China is trying to improve the environmental, social and financial sustainability of BRI investments, following international criticisms. Although there are early signs that implementation of projects is becoming more environmentally friendly, concerns over inadequate environmental impact assessments and resettlement programs remain. Increasing reliance on one country also carries risks – diversifying sources may also help in achieving Cambodia's aim of diversifying its economic structure.