China and Cambodia have gone on to agree to create a safe as well as stable supply chain together and also strengthen cooperation when it comes to transportation infrastructure, as per a joint statement released from the foreign ministry of China on April 18, 2025.
The two countries also got into a deal on the major canal construction in Cambodia, which the country thinks will transform its economic fortunes. It is well to be noted that the investment and scale of the project have been slashed. The agreement was rolled out during the conclusion of the Chinese president, Xi Jinping’s, three-day visit to Southeast Asia, which included stops at Malaysia and Vietnam.
This trip is seen as part of China’s endeavors to consolidate its economic and trading ties with close neighbors at a time when China’s tariff standoff with the US is getting bigger by the day.
The joint statement said that China totally supports Cambodia when it comes to building the Funan Techo integrated water conservancy project as per the principles of feasibility and also sustainability.
This canal construction in Cambodia, which was previously anticipated to cost $1.7 billion, which is almost 4% of Cambodia’s yearly GDP, and stretch almost 180 km, is now valued at $1.16 billion with a curtailed length of almost 152 km, the Cambodian government remarked in a separate statement on April 18, 2025.
This project is going to be financed in the form of a public-private partnership, with Cambodian investors getting to hold the majority stake at 51%, whereas Chinese investors having 49%.
China also went on to value Cambodia’s efforts when it comes to cracking down on illegal online gambling and also telecom fraud, with both countries agreeing to further make the law enforcement cooperation more robust.
Before the Chinese premier’s visit, the Cambodian government had said that it had deported a number of Chinese criminals to China, which included people from Taiwan, in a move that even angered Taipei but was praised by Beijing.
Both China and Cambodia also went on to say that they had agreed to come up with ministerial dialogue between their foreign as well as defence ministers in order to facilitate partnership on certain major strategic issues.
