Chinese President Xi Jinping concluded his three-country Southeast Asian trip with a visit to Cambodia on Friday, highlighting China's steadfastness amid regional economic concerns triggered by U.S. President Donald Trump’s suggested tariffs.
Over the last ten years, China has significantly boosted its presence in the area primarily through leveraging its considerable economic power. Currently, Beijing is positioning itself as a provider of stability and reliability amid uncertainties created by Trump’s tariffs, which pose risks to regional economies focused on exports, with the U.S. typically being their biggest customer.
Cambodia is dealing with some of the highest reciprocal tariff rates suggested by Washington. On top of the general 10% tariff imposed by Trump, Cambodia could face an additional 49% tariff on its exports to the U.S. when his 90-day suspension period ends. As for the countries toured by Xi Jinping, Vietnam may encounter a tariff rate of 46%, whereas Malaysia might have to deal with one at 24%.
"The scheduling of this visit is remarkably opportune for China, coming right after the announcement of Trump’s tariffs, which has led to controlled unease in Cambodia and Vietnam... and turmoil in Malaysia,” stated Astrid Norén-Nilsson, a senior lecturer specializing in contemporary Southeast Asian studies at Sweden’s Lund University, during an emailed interview conducted on Thursday.
Equipped with the moral authority and goodwill of an unwavering ally and dependable trade partner, Xi Jinping is ready for his journey.
During his visits to Vietnam and Malaysia, Xi stressed the importance of enhancing relations, focusing specifically on boosting trade and investments. He also highlighted the necessity of combating unilateral actions and protectionist policies while supporting the global trading framework.
The summary of the visit released on Friday by Cambodia’s Foreign Affairs Ministry primarily emphasized bilateral relations, with only minimal reference to the trade crisis. However, China's state-run Xinhua news agency reported that Xi addressed the same trade issues during this stop as he did previously.
"The historic visit not only reinforced the steadfast dedication to the unbreakable bond between Cambodia and China but also significantly bolstered and expanded the Comprehensive Strategic Partnership and mutually beneficial collaboration between both nations," stated the Cambodian announcement.
While he was visiting, Xi had an official meeting with King Norodom Sihamoni and also met with Prime Minister Hun Manet and Senate President Hun Sen, who happens to be Hun Manet’s father and previously served as prime minister. This trip marked Xi’s return to Cambodia for the first time since 2016.
Xi and Hun Manet also oversaw the signing of 37 agreements related to investments, commerce, education, banking, media, youth activities, farming, healthcare, water management, travel, gender issues, and various other topics.
The details of the largest agreement were unveiled on Friday—the signing of a public-private partnership contract aimed at financing Cambodia’s substantial $1.156 billion Funan Techo Canal initiative. This project, initiated last year, faced an abrupt halt shortly after the commencement ceremony.
The 151-kilometer (94-mile) long canal would connect a tributary of the Mekong River to a harbor on the Gulf of Thailand.
For 13 continuous years, China has held the position of Cambodia’s top trading partner, with bilateral trade amounting to $17.83 billion in 2024, although this exchange heavily favors China. Additionally, over these same 13 years, China has been the leading provider of foreign direct investment into Cambodia. Moreover, it plays a significant role as an aid contributor and stands out as Cambodia’s principal debtor.
In relation to societal and developmental concerns, the Foreign Ministry’s statement subtly drew a comparison with stances taken by the United States, stating, “both parties recognized the worldwide menace presented by climate alteration and pledged to enhance environmental conservation efforts as well as promote cooperation in clean energy initiatives.”
China has also been assisting Cambodia in addressing its issue of removing land mines leftover from past military confrontations, along with collaborating in healthcare. However, the reduction in foreign aid under the Trump administration has had an impact on these areas and others.
The declaration also stated that "both parties concurred with enhancing the collaboration framework between the military forces of the two nations even further."
China provided financial support for expanding the Ream Naval Base located on Cambodia’s southern coastline, sparking concerns that this might turn into a key base for the Chinese Navy within the Gulf of Thailand.
The statement failed to address the core problem. Cambodia has consistently refuted any claims of an accord giving China exclusive rights or facilitating the creation of a foreign military installation.
Cambodia has declared that warships from allied nations are invited to use its newly constructed pier, as long as they adhere to specific requirements. On Tuesday, Japan revealed plans for two of its minesweepers to arrive at the Ream facility over the weekend—the first such visit by a foreign naval force following the completion of the enhancement project.
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