PM calls for study on fears of US-China trade conflict
Cryptos illegal in the Kingdom: regulators
PRIME Minister Hun Sen expressed concern on Tuesday that an impending global trade war could impact the Cambodian economy, suggesting that economists and experts study what preparations should be made to avoid any negative effects.
Pointing out that such a trade war could threaten the global order, the prime minister warned that its impacts would be felt throughout the Kingdom.
“The current situation we are facing now is that the global trade war is definitely happening. So the issue is: how will it impact us and the region?
“Our academics and experts need to conduct studies on the issue for us to respond correctly because it is not a small matter. It is a lose-lose situation,” he said.
US President Donald Trump escalated a growing trade war with China by unveiling plans on Monday to impose 10 percent tariffs on an additional $200 billion worth of Chinese goods.
With the world’s two largest economies already engaged in a confrontation long dreaded by markets and industry, Trump said he was pushing forward with fresh punitive measures over Beijing’s “unacceptable” move to raise its own tariffs.
The US already imposes 25 percent tariffs on $50 billion worth of Chinese imports.
However, in response, China unveiled 25 percent duties on $50 billion in US imports in a tit-for-tat measure.
European Union (EU) countries on Thursday approved a raft of tariffs targeting US goods, including whiskey and motorcycles, in retaliation against painful duties imposed by Trump on European metals.
The Post previously reported that Cambo- dia is already facing the issue over whether the EU is considering possible sanctions against the government over its crackdown on political opposition, including a possible rollback of the Everything But Arms (EBA) preferential trade agreement.
Cambodia’s economy has long relied on the garment sector, which employed 847,419 workers last year.
It generated $7.6 billion last year and grew by four percent, which would mark a slowdown in the growth rate compared to previous years, according to report from the Ministry of Labour.
The EU and the US are the main markets where garments and textiles from Cambodia’s factories end up, while China is seen as the country’s main market for agricultural products.
Centre for Policy Studies Director Chan Sophal said that a comprehensive study on the impact of the US-China trade war should be conducted.
“I agree it’s very important to undertake a comprehensive study on the potential impact of the US-China trade war if it happens,” he said.
Sophal said the country could potentially leverage on the crisis to sell more agricultural products to China and buy cheaper steel from there.
“However, the second-wave effect of the resulting economic slowdown in both China and the US could lower demand for consumption of Cambodian products, and possible investment in the Kingdom, except in agriculture and agro-processing,” Sophal said. THREE of the Kingdom’s financial institutions issued a joint statement on Tuesday, warning the public that using, trading or advertising cryptocurrencies is illegal.
They said various local blockchain projects which were operating without government approval pose serious risks to the public.
The message was posted on the Facebook page of the National Bank of Cambodia (NBC) and endorsed by the Securities and Exchange Commission of Cambodia (SECC) and the General Commissariat of National Police.
It called out ventures such as KH Coin, Suncoin, K Coin, One-coin and Forex coin, all of which operate similarly to bitcoin, which is currently the world’s top cryptocurrency by market capitalisation.
The statement said any entity conducting transactions in cryptocurrencies or advertising them would face legal action.
KH Coin co-founder In Mean expressed support for the statement but said he was disappointed when he saw his cryptocurrency’s name mentioned.
He said his project was designed to educate investors and the public to identify deceptive blockchain projects and avoid them.
“Our KH Coin has never deceived anyone. It is not a kind of deceptive investment which causes people to lose money.
“It has been three years since we started working on this proj- ect. We educate and instruct people not to deceive anyone,” he said.
Mean previously told The Post that he tried to monetise his cryptocurrency but he got slapped down by regulators.
He expressed hope that the central bank would realise the potential of blockchain, which is the technology behind cryptocurrencies.
It should undertake its own project and take a more liberal stance on cryptocurrencies in the future, Mean said.
Entrepreneurs using blockchain technology have been operating in a grey area until recently as the government made statements discouraging its use while also endorsing certain projects and even took part in the platform.
In March, Deputy Prime Minister Men Sam An spoke at the launch of a cryptocurrency project called Entapay.
The firm was embroiled in controversy when its claims of being endorsed by the Royal Cambodian Armed Forces were denied.