Chinese President Xi Jinping urged Cambodia to take a stand against trade protectionism during his visit to Phnom Penh, wrapping up a three-country tour of Southeast Asia. His comments follow increased U.S. tariffs that have impacted exports from both China and Cambodia.
Cambodia, a key exporter of garments and footwear to the U.S., had been subjected to a steep 49% tariff rate, among the highest globally. Although these tariffs were temporarily suspended for many nations until July, those affecting Chinese goods remain in place, totaling around 145%.
In meetings with Cambodian Senate Chairman Hun Sen, Xi warned that trade disputes undermine global commerce and disrupt international economic systems, according to official Chinese media reports.
In an article published in Cambodian media earlier that day, Xi repeated his stance against both protectionism and hegemonic practices—messages he also delivered during stops in Vietnam and Malaysia earlier in the week.
China and Cambodia maintain strong bilateral ties, with China having poured billions into Cambodian infrastructure over the years, including roads, airports, and other major development projects. China is also the country’s largest lender.
A spokesperson from Cambodia’s Ministry of Finance said ahead of Xi’s visit that the government hopes to expand cooperation, particularly in infrastructure. One key area of interest is the Funan Techo Canal, a 180-kilometer waterway project aimed at connecting the Mekong River to the country’s southern coast, bypassing Vietnamese ports and easing shipping routes.
Cambodian officials have stated that China would help fund the $1.7 billion canal, but the extent of Beijing’s financial support remains unclear. Initial statements suggesting full Chinese funding have since been revised to partial backing, estimated at around 49% of the total cost, roughly 4% of Cambodia’s annual GDP.
Despite historically large loans, China issued no new financing to Cambodia last year, a notable shift attributed to China scaling back global investments amid domestic economic concerns and increasing scrutiny of overseas projects.
Xi’s visit is being seen as part of a broader effort to reinforce China’s influence in Southeast Asia, especially as regional economies feel the effects of recent U.S. trade policies. During his trip, Xi reaffirmed the strong relationship between the two countries and also called on Cambodian authorities to intensify efforts against online scam networks, many of which are run by Chinese groups and target Chinese citizens.
