China and Cambodia have agreed to build safe and stable supply chains together, with a focus on transportation infrastructure. The two countries also signed a deal on the construction of a major canal project in Cambodia, which aims to transform the country’s economic fortunes.
The canal, valued at $1.16 billion, will be financed through a public-private partnership with Cambodian investors holding 51% and Chinese investors holding 49%. The project has been scaled back from its original estimate of $1.7 billion.
Chinese President Xi Jinping’s three-nation tour of Southeast Asia, which included stops in Vietnam and Malaysia, came to an end with the signing of the canal deal. Beijing sees this move as part of its efforts to consolidate economic and trading ties with neighboring countries.
In addition to the canal project, China has commended Cambodia’s efforts to crack down on illegal online gambling and telecom fraud. The two countries have agreed to strengthen law enforcement cooperation in this area.
The agreements also include plans for ministerial dialogue between their foreign and defence ministers to facilitate coordination on major strategic issues.
Source: https://www.reuters.com/world/asia-pacific/china-cambodia-vow-supply-chain-cooperation-sign-canal-deal-2025-04-18