China grants ASEAN ally loans

China agreed to give Cambodia more than US$500 million in soft loans and grants over the next five years, in what appears to be payback for the countries support at this year’s Association of Southeast Asian Nations (ASEAN) summit, Reuters reported. Cambodian Prime Minister Hun Sen signed four loan agreements for unspecified projects worth US$420 million during a weekend visit to China, with a further US$80 million expected to be agreed to later this year. China has also promised a gift of US$24 million for use on any project. China’s government also thanked Cambodia for helping Beijing maintain good relations with ASEAN member countries in its role as chair during the July summit, Cambodia’s finance minister said. ASEAN failed to reach a joint communique for the first time in its history, due to tensions over the South China Sea. Cambodia has been accused of using its leadership role to block discussion of the issue.