Phnom Penh: Chinese President Xi Jinping concluded his Southeast Asian tour in Cambodia on Thursday, encouraging the nation to oppose protectionism as both countries face economic pressure from U.S. tariffs.
Xi’s visit comes amid heightened trade tensions, with Cambodia – a key garment and footwear exporter to the U.S. – recently hit with steep tariffs reaching 49%. These duties, among the world’s highest, have been temporarily suspended for most nations until July, excluding China, which continues to face a cumulative tariff rate of 145%.
In an op-ed published in Cambodian outlets, Xi reiterated themes he stressed earlier this week in Vietnam and Malaysia, condemning “hegemonism” and “protectionism.” Cambodia remains a strong ally of Beijing, which has poured billions into local infrastructure and stands as Phnom Penh’s top lender.
Speaking ahead of Xi’s arrival, Finance Ministry spokesman Meas Soksensan hinted at expectations for deeper cooperation, particularly in infrastructure development. He referred to the highly anticipated 180-kilometer Funan Techo Canal project, seen as Cambodia’s most ambitious development plan to date. The canal would stretch from the Mekong River near Phnom Penh to the Gulf of Thailand, potentially bypassing Vietnamese ports and raising environmental concerns over the Mekong Delta.
Though China has previously been cited as covering the full cost of the $1.7 billion project—about 4% of Cambodia’s GDP—recent statements have lowered that estimate to 49%. So far, Beijing has made no official financial pledge.
Notably, China did not issue any new loans to Cambodia in 2024, a significant departure from past years of extensive lending, as Beijing tightens overseas investment amid internal economic challenges and mounting scrutiny over unviable projects.
Xi's trip has been characterized as a diplomatic charm offensive following the economic strain caused by U.S. trade measures. While praising the two countries' "ironclad friendship," he also urged Cambodia to intensify efforts against online scam operations often run by Chinese criminal groups targeting fellow Chinese citizens.
In anticipation of Xi’s visit, Cambodia deported several Chinese nationals involved in criminal activities—some reportedly from Taiwan—a move that pleased Beijing but drew criticism from Taipei.
Xi received a warm welcome in Phnom Penh, with crowds waving Chinese flags lining his motorcade route. However, some observers remain skeptical about the visit’s concrete outcomes.
“There are plenty of flags, plenty of MoUs, and a lot of brotherly handshakes—but likely not much real substance,” commented a Western diplomat based in Cambodia.
