Cambodia seeks China help as Xi visits amid US tariff standoff

Cambodia is hoping for renewed Chinese financial support, particularly for major infrastructure projects, as President Xi Jinping visits Phnom Penh to conclude his Southeast Asia tour.

Cambodia is banking on increased financial backing from China—particularly for major infrastructure projects—during President Xi Jinping’s visit to Phnom Penh on Thursday, the final stop of his Southeast Asia tour, a government spokesperson said.

China is Cambodia’s largest creditor and a close ally, having invested billions in infrastructure such as roads and airports. Meas Soksensan, a spokesperson for Cambodia’s finance ministry, told Reuters that further cooperation on infrastructure is anticipated, including possible support for the ambitious 180-kilometer Funan Techo Canal.

In an article published ahead of his arrival, Xi encouraged Cambodia to resist "hegemonism" and "protectionism," echoing messages delivered earlier in his visits to Vietnam and Malaysia. His remarks come amid ongoing concerns in the region over U.S. "reciprocal" tariffs introduced under President Donald Trump. Cambodia, a major exporter of garments and footwear to the U.S., was hit with one of the highest tariff rates at 49%, although most of those duties are currently paused until July.

Although Xi’s article cited the benefits of previous Chinese-funded infrastructure projects in Cambodia, it did not confirm any new investments. The Cambodian government has claimed China would fund the Funan Techo Canal, which is intended to connect the Mekong River near Phnom Penh to the Gulf of Thailand, bypassing Vietnamese ports and drawing water from the Mekong Delta. However, Beijing has yet to make a public financial commitment. Official estimates put the canal’s cost at $1.7 billion—nearly 4% of Cambodia’s annual GDP—and Phnom Penh’s statements on Chinese involvement have shifted from full funding to covering 49% of costs.

Xi’s Southeast Asia visit, interpreted by some as a diplomatic charm offensive in the face of U.S. trade measures, began in Vietnam, where the canal project has been met with skepticism. Unlike previous years, China did not issue any new loans to Cambodia in 2023, a reflection of Beijing’s scaled-back global investments amid domestic economic concerns and underperforming overseas projects.

Despite recent tensions linked to Chinese-run scam operations in Cambodia, both nations continue to refer to their relationship as "ironclad." Ahead of Xi’s visit, Cambodia deported several Chinese nationals, including individuals from Taiwan—a move that drew criticism from Taipei. Xi used the visit to call for a crackdown on online fraud targeting Chinese citizens.

As Xi’s motorcade traveled through Phnom Penh, he was welcomed by crowds waving Chinese flags. However, a Western diplomat based in Cambodia described the visit as largely symbolic: “Lots of flags, lots of MoUs, and lots of bromance—probably not a lot of substance.”

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