China, Cambodia deepen economic ties with MOU, canal project

China and Cambodia are deepening economic cooperation as highlighted by recent agreements and infrastructure projects, including the $1.2 billion Funan Techo Canal, which aims to connect Cambodia’s manufacturing sectors with the Gulf of Thailand and boost the country's exports and job opportunities. A new Memorandum of Understanding between the two nations seeks to strengthen industrial and supply chain integration, further solidifying trade and investment ties. Chinese officials argue that this partnership is crucial for Cambodia to withstand the negative impacts of the ongoing US-China trade war and recent US-imposed tariffs on both Chinese and Cambodian goods. Cambodian leaders and Chinese representatives emphasize that expanded collaboration will increase Cambodia’s economic resilience and confidence in the face of external economic pressures. The Sihanoukville Special Economy Zone is cited as a model for such economic cooperation, and both governments encourage further business collaboration in areas like trade, investment, and technology.