China, Cambodia Sign $1.2 Billion Canal Deal Amid Environmental Concerns

Cambodia and China have signed a $1.2 billion agreement to fund the Funan Techo Canal, a major infrastructure project aimed at connecting the Mekong River near Phnom Penh to the Gulf of Thailand, which is expected to boost trade efficiency and reduce logistics costs. The deal, finalized during Chinese President Xi Jinping's state visit to Cambodia, marks a public-private partnership where Cambodian investors hold a majority stake. The canal project is part of China's broader strategy to strengthen regional trade ties amid ongoing tensions with the United States, particularly in light of high U.S. tariffs on Cambodian exports. Xi's visit underscores the deep economic and political ties between the two countries, with China being Cambodia's largest creditor and a significant investor in its infrastructure. Cambodian officials have expressed hopes for continued and expanded cooperation with China, particularly in infrastructure and economic development. This collaboration is seen as vital for Cambodia's economic growth and its efforts to diversify trade routes.