Analysis on geo-effects of China’s overseas industrial parks: A case study of Cambodia Sihanoukville Special Economic Zone

doi:10.1007/s11442-021-1867-3

Abstract

Abstract:

China’s overseas industrial parks contribute to political and economic cooperation, cultural exchange between home and host countries. Current studies mainly discuss the effect of overseas industrial parks from the perspective of institutional and cultural difference, multi-scale coupling, as well as key partnerships, while little attention has been paid to the comprehensive analysis of overseas industrial parks. Based on a theoretical framework, this paper explores the overall effect of China’s overseas industrial parks from the geo-effects perspective by using field interviews and a case study approach. The research shows that: (1) the geo-effects reveal the over effect of overseas industrial parks from the multiple and complementary dimensions of geopolitics, geo-economics, geo-society and geo-culture; (2) the Cambodia Sihanoukville Special Economic Zone, as a flagship BRI project, has produced the prominent and positive geo-effects; (3) the institutional-economic-cultural-environmental adaptability of overseas industrial parks is becoming important. Overseas industrial parks must be rooted in the politics, economy, society, and culture of host country; embedded in local social networks; balance the rights and interests of all stakeholders; and form the community of interests, community of destiny, and community of responsibility with political mutual trust, economic integration, cultural inclusiveness, and social harmony. The paper not only deepens the understanding about the overall effect of overseas industrial parks, but also provides decision support and theoretical reference for government policy makers and the overseas investment of enterprises.

Key words: overseas industrial parks, geo-effects, the Belt and Road, Sihanoukville Special Economic Zone

WANG Shufang, MENG Guangwen, ZHOU Jun, XIONG Liran, YAN Yuxin, YU Na. Analysis on geo-effects of China’s overseas industrial parks: A case study of Cambodia Sihanoukville Special Economic Zone[J].Journal of Geographical Sciences, 2021, 31(5): 712-732.

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Evaluation items	Specific evaluation	Evaluated outcome
Administrative service	Convenient service window	Establishing one-stop service window
Cooperation agreements	Official economic cooperation	Singing two agreement about taxation and economic cooperation
Government governance	Governance level of local government	Setting up a special working group to regulate public order in Preah Sihanouk City
Political relation	High-level visits	Creating a favorable macro environment due to frequent high-level mutual trust and visits
Coordination mechanism	Governmental coordination framework	Signing an agreement between the Government of China and the Government of Cambodia on SSEZ
Law enforcement	The prohibition of internet gambling	Carrying out joint law enforcement and improving the investment environment of SSEZ

Evaluation items	Specific evaluation	Evaluated outcome
Economic cooperation	Pragmatic cooperation in key areas	Deepening the economic cooperation between China and Cambodia
Tax and tariff preferences	Preferential tax policies and duty exemption	Implementing a series of preferential tax policies and enjoying the GSP, MFN
Local industrialization	Industrialization process	Promoting the industrialization process of Preah Sihanouk Province
Economic development	Economic contribution of SSEZ to Preah Sihanouk Province	Exceeding 50% in 2018
Industrial cluster	Cost saving and economies of scale	Saving labor costs and increasing the number of enterprises with174 in 2019
Employment	Local employment	Creating nearly 30,000 jobs

Evaluation items	Specific evaluation	Evaluated outcome
Win-win model	Stakeholders’ benefits	Achieving win-win for stakeholders
Education and training	Colleges and vocational training	Establishing two colleges and carrying out technical training
International routes	Direct flight	Opening Wuxi-Preah Sihanouk direct flight
Friendly identity	Friendly cities or provinces	Establishing sister cities between Wuxi City and Preah Sihanouk City, as well as friendly provinces between Jiangsu and Preah Sihanouk

Evaluation items	Specific evaluation	Evaluated outcome
Concept culture	Collision and integration	Integrating the Cambodia’s value of comprehensive charity
Institution culture	Localized management systems	Hiring local people as lawyers, translators, drivers and front-line managers
Behavior culture	Seeking common ground	Mastering Cambodian language and understanding local culture
Material culture	Highlighting corporate culture	Establishing excellent models and publishing internal newspaper