Xi Jinping's Cambodia Stop in ASEAN Tour Highlights China's Bid for Trade Leadership Amid U.S. Tariff Tensions
Chinese President Xi Jinping arrived in Phnom Penh on April 17th for a two-day state visit to Cambodia, marking the final leg of a three-nation Southeast Asian tour that included Vietnam and Malaysia. The visit—his first to Cambodia since 2016—comes as China seeks to deepen its economic and strategic linkages in the region and present itself as a source of stability in the face of the Trump Administration’s tariffs led approach to U.S. trade policy.
Trade and investment dominated discussions, particularly as Cambodia has been hit hard by U.S. tariffs, including a 49% duty on apparel and footwear exports, among the highest globally. China remains Cambodia’s largest trading partner and creditor, with bilateral trade exceeding $15 billion in 2024—nearly 30% of Cambodia’s total trade volume, though heavily skewed in Beijing’s favor.
The two countries signed 37 agreements during Xi’s visit, covering trade, investment, and finance, though details on financial commitments remain unclear. Notably, no new loans were announced, contrasting with past years of significant lending. Cambodia expects China to finance part of the $1.7 billion Funan Techo Canal, a controversial infrastructure project with potential environmental impacts on the Mekong Delta. However, statements on China’s contribution have shifted from full funding to covering 49% of the cost.
