Cambodia requests financial aid from China during Xi’s visit amid ongoing US-China trade tensions.
Cambodia is strategically positioned to secure increased financial support from China amid President Xi Jinping’s visit to Phnom Penh. This visit forms part of a broader initiative to strengthen regional trade relations, particularly in light of sizable tariffs imposed by the United States.
As Xi embarks on a three-country tour across Southeast Asia, which also includes stops in Vietnam and Malaysia, he is set to engage in discussions with prominent Cambodian leaders, including King Norodom Sihamoni, Prime Minister Hun Manet, and Senate President Hun Sen. The Cambodian government has expressed anticipation for enhanced collaboration, especially regarding infrastructure projects vital for economic growth.
A spokesperson for Cambodia’s Ministry of Economy and Finance, Meas Soksensan, emphasized the importance of these discussions, particularly surrounding the Funan Techo Canal project—Cambodia’s most ambitious infrastructure endeavor, extending 180 kilometers. The project aims to bolster the nation’s logistics and trade capabilities, presenting a critical opportunity for economic advancement.
Phnom Penh has cultivated a robust partnership with China, which has invested considerable resources in various sectors, including transportation infrastructure and energy. As China emerges as Cambodia’s largest creditor, the deepening of this relationship is seen as pivotal for the Southeast Asian nation’s economic landscape.
Experts highlight the geopolitical implications of Xi’s visit, noting the growing alignment between China and its Southeast Asian neighbors in response to perceived isolationist policies from the Trump administration. Al Jazeera’s correspondent, Katrina Yu, underscored the strong bonds between the two nations, characterizing their relationship as one of “ironclad friendship,” enriched by military cooperation alongside infrastructure investment.
Cambodia’s economy heavily relies on the textile and footwear industries, which significantly export to the US, with a substantial portion of these enterprises under Chinese ownership. However, the nation has faced challenges, including a notable tariff increase that reached as high as 49 percent, one of the highest rates globally. While these tariffs are slated for review, the Cambodian government is poised to negotiate more favorable terms.
During his visit, Xi reiterated a call for Cambodia to embrace cooperative economic policies and resist sentiments of “hegemonism” and “protectionism.” He has previously emphasized these values during his engagements in Vietnam and Malaysia, reflecting a consistent message aimed at fostering regional unity.
Although Cambodia has not yet received new financial commitments from China regarding the canal project, the two nations share a vision centered on mutual respect, equality, and noninterference in domestic matters. Prime Minister Hun Manet acknowledged China’s essential role in Cambodia’s socioeconomic development, reinforcing the belief that ongoing collaboration with China will yield significant benefits for Cambodia’s future.
As both countries navigate the complexities of international trade and geopolitical dynamics, the relationship between Cambodia and China remains a cornerstone of regional economic strategy and development.
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