Cambodia is hoping for increased financial support from China, particularly for infrastructure projects, as President Xi Jinping arrives in the country on April 17, wrapping up a three-nation Southeast Asian tour, according to a Cambodian government spokesperson. Cambodia, a major exporter of clothing and footwear to the U.S., faced a 49% reciprocal tariff imposed by former U.S. President Donald Trump, one of the highest in the world, though many tariffs were paused until July. The country is also a close partner of China, which has invested heavily in infrastructure projects like roads and airports, and is Cambodia’s largest creditor.

Meas Soksensan, a Cambodian finance ministry spokesperson, expressed expectations for further cooperation with China, particularly in infrastructure development, including a planned 180km canal, one of Cambodia’s most ambitious infrastructure projects. However, China has not made any public commitment to fund the canal, although Phnom Penh has previously suggested that China might cover up to 49% of the $1.7 billion project cost.

In a statement published on the morning of Xi’s visit, the Chinese president encouraged Cambodia to oppose hegemonism and protectionism, repeating similar messages he had delivered in Vietnam and Malaysia earlier in his trip. While Xi highlighted the benefits of previous Chinese infrastructure projects in Cambodia, he did not mention any new ventures.

The canal project, intended to divert water from the Mekong River to the Gulf of Thailand, has been a contentious issue. Cambodia claims China will fund it, but details on the financial commitment remain unclear. This project aims to reduce Cambodia’s reliance on Vietnamese ports and protect the fragile rice-growing regions of the Mekong Delta. Xi’s visit to Cambodia is seen as part of China’s broader effort to strengthen ties in Southeast Asia, a region impacted by U.S. tariffs. China had reduced overseas investments in 2023, in part due to domestic economic difficulties, and did not offer new loans to Cambodia that year, marking a departure from previous years when significant funds were lent.

Despite challenges, China and Cambodia continue to describe their relationship as “ironclad,” although there have been tensions related to Chinese-run scam centers in Cambodia. Before his arrival, Cambodia deported several Chinese criminals to China, including individuals from Taiwan, which angered Taipei. In the lead-up to Xis visit, Cambodia also held joint military exercises with China at a newly expanded naval base, a move that has raised concerns in the U.S. over the potential for a Chinese military presence in the region.

Disclaimer: This image is taken from Reuters.