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Xi Jinping Completes Southeast Asia Tour with Visit to Cambodia

Chinese President Xi Jinping arrives in Cambodia, concluding his Southeast Asia tour, emphasizing trade ties and partnerships amidst U.S. tariff challenges.

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Overview

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Chinese President Xi Jinping has concluded his three-nation Southeast Asia tour with a two-day visit to Cambodia. Xi's arrival on April 17 marked his first visit since 2016, aiming to bolster ties as trade relations become crucial due to steep U.S. tariffs threatening Cambodia's economy. Cambodian leaders, including Prime Minister Hun Manet, have termed China indispensable for their socio-economic development. During his visit, Xi reiterated China’s commitment to support Cambodia against external pressures. Several agreements on cooperation are expected to be signed, and discussions will focus on trade, investment, and infrastructure projects, particularly the Funan Techo Canal.

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  • Xi Jinping is promoting China as a collaborative partner for Southeast Asia amidst global economic uncertainties caused by US tariffs.
  • China plans to enhance trade and investment cooperation with Malaysia and Vietnam, promising greater access to Chinese markets for their agricultural products.
  • Malaysia's Prime Minister criticized the US for its protectionist policies, indicating a shift towards strengthening ties with China.

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The main goals of Xi Jinping's visit to Cambodia were to strengthen bilateral ties, emphasize trade relations, and support Cambodia amidst U.S. tariff challenges by signing cooperation agreements focusing on trade, investment, and infrastructure projects such as the Funan Techo Canal.

China is Cambodia’s largest trading partner, surpassing $15 billion in trade in 2024, representing nearly 30% of Cambodia’s total trade volume, and is considered an indispensable partner for Cambodia’s socio-economic development, highlighted by ongoing and expected cooperation on infrastructure and economic projects.

The Funan Techo Canal is Cambodia's most ambitious infrastructure project, a 180km canal intended to divert water from the Mekong River to the Gulf of Thailand, reducing shipping through Vietnamese ports. While Cambodia has said China would finance the project, China has not publicly committed funds, and Cambodian statements on China's financial involvement have varied from covering 100% to 49% of the estimated $1.7 billion cost.

Cambodia faces one of the highest U.S. tariff rates, including a 10% universal tariff and a potential 49% tax on exports to the U.S., threatening its economy. This has made trade relations with China crucial, as China has increased economic support and investment to help Cambodia offset the impact of U.S. tariffs.

Earlier in April, China and Cambodia held joint military exercises at a newly expanded naval base on the Cambodian coast, a facility that has raised concerns from the United States over the potential for it to become a Chinese military outpost.

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