Xi Wraps Up Three-Nation ASEAN Tour in Cambodia

Keeping a consistent vis-a-vis Trump’s economic nationalism, Chinese President Xi Jinping reiterated his message to ‘resist protectionism’ in Cambodia, the final leg of his three-nation ASEAN tour.

Cambodia is a major exporter of clothes and shoes to the US and was slapped with one of the highest tariff rate of 49%, prior to the 90-day suspension. Nearly half of the garment and footwear manufacturers are Chinese owned who have moved to Cambodia to benefit from cheaper labor and as a workaround to US tariffs on China.

China has pumped billions of dollars in infrastructure projects in Cambodia and is currently the largest creditor of Cambodia. In the context of the state visit by Xi, Cambodia has proposed for China to finance a 180-km Funan Techo Canal to the tune of USD 1.7 billion The Canal would run from the Mekong River near Phnom Penh to the coast on the Gulf of Thailand, reducing Cambodian dependence on Vietnamese ports.

Although the Chinese did not make public any commitment to the Canal, Cambodia did revise its expectation for China to finance 100% to just 49% of the total cost. The cost of building the canal represents nearly 4% of the annual GDP of Cambodia and would be one of the largest infrastructure projects in the country.

Prior to Xi’s arrival, Cambodia deported a number of Chinese criminals, including Taiwanese, to China. Taipei protested the move, but Beijing applauded. Cambodia is infamous for its Scam Centers which are more often than not run by Chinese gangs and recently the two countries have worked closely together to crack down on the illegal activity.

On 17 April 2025, the two countries signed 37 documents, covering investment, trade and finance. A western diplomat described the state visit as being high in bromance but low in substance as MoU tend to be non-binding.