Cambodia's foreign ministry has expressed deep regret over U.S. sanctions imposed on local tycoon and senator Ly Yong Phat, labeling the move as politically motivated. The sanctions, which target Ly's L.Y.P Group Co. and several associated businesses, stem from allegations of human trafficking and forced labor linked to online investment scams. This decision comes during a sensitive period as Cambodia strengthens ties with China, contrasting with U.S. efforts to engage with its new leader, Hun Manet. The Cambodian government argues that such unilateral sanctions undermine international law and norms regarding sovereignty and non-interference. U.S. Treasury officials emphasized that the sanctions aim to hold accountable those involved in significant human trafficking schemes, which have increasingly become a national security concern in Southeast Asia.