China’s Xi urges Cambodia to oppose protectionism in light of the ongoing tariff conflict with the United States

China’s leader, Xi Jinping, called on Cambodia to “resist protectionism” during his visit to Phnom Penh on Thursday, concluding a three-nation tour of Southeast Asia amid concerns that U.S. tariffs could impact the economies of both nations.

Cambodia, a significant exporter of clothing and footwear to the United States, faced a steep tariff rate of 49%, one of the highest in the world, before “reciprocal” duties were suspended until July for most countries, with the exception of China, which is subject to combined tariffs of 145%.

In a piece published in Cambodian media on Thursday morning, Xi urged Phnom Penh to stand against “hegemonism” and “protectionism,” echoing sentiments he shared earlier in the week with Vietnam and Malaysia during the initial stages of his trip.

Phnom Penh maintains a close partnership with China, which has invested billions in various projects, including infrastructure such as roads and airports, and is the largest creditor to the country. “We anticipate increased cooperation, particularly in infrastructure development,” stated Meas Soksensan, a spokesman for the Cambodian finance ministry, in response to inquiries about potential financial backing from Beijing for a 180 km (111.85 miles) canal, Cambodia’s most ambitious infrastructure initiative.

Xi, who has a road named in his honor on the outskirts of the capital, highlighted the positive economic effects of previous Chinese infrastructure investments and reaffirmed his commitment to “unswervingly support” Cambodia’s development, although he did not announce any new specific projects during his remarks on Thursday. The Cambodian government has indicated that China will finance the Funan Techo Canal, which is designed to connect the Mekong River near Phnom Penh to the Gulf of Thailand, redirecting water from the vulnerable Mekong Delta and decreasing Cambodian shipping traffic through Vietnamese ports.

China has not yet made any public financial pledges regarding the project, while Phnom Penh has revised its statements about Chinese involvement, now indicating that it will cover 49% of the total estimated costs of $1.7 billion, which represents nearly 4% of Cambodia’s annual GDP.

According to official Cambodian data, Beijing did not extend any new loans to Cambodia last year, a significant shift from previous years when it provided hundreds of millions of dollars in funding. This decline in financial support coincides with China’s overall reduction in foreign investments due to domestic economic challenges and concerns over unsuccessful projects.

Xi Jinping’s visit to Cambodia has been interpreted as a diplomatic effort to strengthen ties in Southeast Asia, particularly following the impact of U.S. tariffs on the region. During his visit, Xi emphasized the “ironclad friendship” between the two nations but also called on Cambodia to take action against online scams. Many of these scam operations in Cambodia are reportedly managed by Chinese criminal groups, targeting Chinese citizens as victims or forced laborers.

Prior to Xi’s arrival, the Cambodian government announced the deportation of several “Chinese criminals,” including individuals from Taiwan, a decision that drew ire from Taipei but was welcomed by Beijing.

As Xi made his way from the airport to meetings with local leaders, he was greeted by crowds waving Chinese flags, as shown in videos shared on social media. A Western diplomat based in Cambodia commented on the visit, saying, “There are plenty of flags, numerous memoranda of understanding, and a lot of camaraderie, but likely little in terms of substantial outcomes,” referring to the often non-binding agreements signed during such state visits.