Chinese President Xi Jinping, concluding a three-nation Southeast Asia tour, arrived in Phnom Penh on Thursday and urged Cambodia to "resist protectionism" as U.S. tariffs impact both nations' economies, according to Reuters.
Cambodia, a significant exporter of clothing and footwear to the United States, faced a 49% tariff rate, one of the highest globally, before most duties were paused until July, except for China, which faces combined tariffs of 145%.
In a Cambodian media article published Thursday morning, Xi called on Phnom Penh to oppose "hegemonism" and "protectionism," echoing statements made earlier in Vietnam and Malaysia.
Cambodia, a close partner of China, has received billions of dollars in Chinese investments for infrastructure projects, including roads and airports, and China remains its largest creditor.
"We expect more cooperation including on infrastructure development," said Meas Soksensan, spokesman for Cambodia’s finance ministry, on the eve of Xi’s arrival, responding to inquiries about potential Chinese funding for a 180 km (111.85 miles) canal project, estimated at $1.7 billion, nearly 4% of Cambodia’s annual gross domestic product.
The Funan Techo Canal, intended to connect the Mekong River near Phnom Penh to the Gulf of Thailand, would divert water from the Mekong Delta and reduce Cambodia’s reliance on Vietnamese ports for shipping.
While Cambodia has stated China would finance the project, China’s commitment has shifted from covering 100% to 49% of costs, with no public financial pledge confirmed.
Xi highlighted the economic benefits of prior Chinese infrastructure investments and pledged to "unswervingly support" Cambodia’s development but announced no new specific projects.
Official Cambodian data indicates China issued no new loans to Cambodia last year, a shift from previous years when loans reached hundreds of millions of dollars, reflecting China’s reduced overseas investments amid domestic economic challenges.