The United States has lifted its embargo on defence trade with Cambodia, a decision that follows a ceasefire agreement recently brokered between Cambodia and Thailand under the supervision of President Donald Trump.

The arms ban had been imposed in 2021 by then-President Joe Biden, citing concerns about China’s expanding military presence in Cambodia, along with human rights and corruption issues.

A notice published in the Federal Register stated that U.S. Secretary of State Marco Rubio removed the restrictions in recognition of “Cambodia’s diligent pursuit of peace and security,” noting the country’s renewed engagement with Washington on defence cooperation and efforts to combat transnational crime. Future arms sales will be reviewed and approved on a case-by-case basis.

It remains uncertain whether long-standing U.S. concerns about China’s role at Cambodia’s Ream Naval Base have been resolved. Analysts and officials have for years pointed to Beijing’s construction activities there as part of its wider military expansion in the South China Sea.

The announcement followed comments by U.S. Secretary of Defence Pete Hegseth after a meeting with Cambodia’s Defence Minister Tea Seiha in Malaysia, where both sides agreed to restart joint military exercises.

Cambodian Prime Minister Hun Manet praised Trump for mediating the ceasefire with Thailand and said he had nominated him for the Nobel Peace Prize for helping end recent border clashes.

Gregory Poling, a Southeast Asia expert at the Center for Strategic and International Studies in Washington, said the policy shift was likely symbolic, as Cambodia lacks the resources or intent to purchase advanced U.S. weaponry. He added that the move fits a familiar pattern of U.S. administrations seeking to reset relations with Phnom Penh, though lasting progress may depend on access to areas of the Ream base reportedly reserved for Chinese use.