Chinese President Xi Jinping met with Phnom Penh’s Cambodian Prime Minister Hunmane as China seeks to strengthen regional trade ties to offset the impact of sudden US tariffs.
As part of three Southeast Asia tours, including Vietnam and Malaysia, XI was greeted by Cambodian King Norodom Sihamoni at a military welcome ceremony that landed in the capital.
Mane and his father, Senate Speaker Hun Sen, shared a post on their social media accounts during the day marking their meeting with XI, but there were no details about the expected contract.
“We look forward to more cooperation, including infrastructure development,” Meas Soksensan, a spokesman for Cambodia’s Ministry of Economics and Finance, told Reuters on the eve of XI’s arrival.
He was answering questions about whether Cambodia expects Beijing to announce financial support for Funan Techo Canal, the country’s most ambitious infrastructure project.
Phnom Penh is a close partner in China, investing billions of dollars in a variety of projects, including roads and airports, and is the country’s largest creditor.
“The Trump administration is trying to isolate Beijing, and Beijing’s response is here to spread his arms to his Asian neighbors,” said Katrina Yu of Al Jazeera.
Yu added that Xi received the warmest support in Cambodia on the tour. This is because these two are “Ironclad Friends” who have deep military ties in addition to investing in infrastructure.
Meanwhile, Cambodia is a major exporter of clothing and footwear to the US, with half of these companies owned by Chinese business owners, Yu explained.
Phnom Penh was slapped at one of the world’s highest, 49% US tariff rates, before most of his duties were suspended until July.
“(Cambodia) is trying to negotiate it (the tariff rate). XiJinping wants to remind them.
In an article published in Cambodian media on Thursday morning, Xi chiang urged Phnom Penh to oppose “hegemonism” and “protectionism,” and reiterated the message he sent to Vietnam and Malaysia on the first two legs of his trip.
“A crucial role”
According to the International Monetary Fund, China is Cambodia’s largest trading partner and source of investment, with more than a third of Cambodia’s $11 billion foreign debt being paid to China.
Chheang Vannarith, a political analyst and public policy instructor, told Al Jazeera that Xi’s visit to Phnom Penh marks a “new milestone in bilateral relations.”
He said there is high hopes for greater cooperation in infrastructure projects, not just in trade, development, tourism, technology and other areas. “For Cambodia, China is extremely important in socioeconomic development and poverty reduction,” he said.
Vannalis added that Cambodia is expected to increase exports to China in response to tariff pressure from US President Donald Trump’s administration.
“Cambodia is trying to diversify its export products and export markets to reduce the risk of overreliance on the US market. China has become another important destination for Cambodia’s exports.”
So far, China has not made any public financial commitments to Cambodia’s canal project, but Phnom Penh has covered China’s involvement statements from 100% to 49% of its total cost, estimated at $1.7 billion.
According to official Cambodia data, Beijing did not sign a new loan to Cambodia last year.
A decline in funding has been caused as China cut overall overseas investment amid concerns over domestic economic issues and failed projects.
Nevertheless, Hun Mane said in a video posted Wednesday that the two countries “have a common interest on principles that respect sovereignty, equality and interference in domestic affairs.”
He also said that China played a “pivotal role” in Cambodia’s socioeconomic development.