(CDC), in the first half of 2023, China became the leading investor, accounting for 42.1%
of Cambodia's total FDI (Kunmakara, 2023).
As of 2020, Cambodia has become the second largest recipient of China's FDI stock after
Singapore among Southeast Asian countries, accounting for 14.9%, surpassing
Thailand's 11.1%, Indonesia's 11.0%, and Myanmar's 9.8% (Mingey et al., 2023).
Accordingly, this demonstrates that no ASEAN country has such a high share of Chinese
investment to achieve parity with Cambodia. Unlike Singapore, which held the leading
position in 2020 but has a highly diversified economy, Chinese investment in Cambodia
has a fundamentally different and systemic nature, encompassing infrastructure, energy,
and defence development.
Trade is another important dimension that we need to consider in order to understand
the specific mechanisms on which strong ties between China and Cambodia are built. In
2010, a trade agreement was concluded between China and ASEAN, which in turn made
China not only the largest trading partner for the member countries but also the first
country to export to them. Despite this, Cambodia became the first country to engage in
bilateral trade with China among all ASEAN countries that were also included in the
agreement. According to the agreement, the volume of trade between the two countries
in 2017 should have reached 5 billion dollars (Pheakdey, 2012). Additionally, the
formation of the CCTFA in 2020 and Cambodia's ratification of the RCEP in 2021 allowed
the total trade in 2023 to increase to $12.26 billion, with the prospect of further growth
(The Phnom Penh Post, 2024). Such cooperation in the field of trade opens wide economic
opportunities for Cambodia, having China as a market for export goods, while deepening
the strategic partnership and the importance of China in shaping its policy at various
levels.
In addition, current statistics demonstrate a significant ongoing expansion of Sino-
Cambodian cooperation in the field of trade. According to data released by the General
Department of Customs and Excise of Cambodia (GDCE), trade volume reached $4.48B
in 2024, which is more than 15% higher compared to 2023. Taking this into account,
China ranks first as a trading ally, outperforming the US, Vietnam, Japan, and Thailand.
In addition, according to GDCE bilateral trade data, Cambodia's exports to China
increased by 22.3% in 2024 compared to the previous year and amounted to $1.6B,
while Cambodian imports from China increased by 24.5% year-on-year. Both sides gain
substantially from this long-term trade cooperation, with Cambodia enjoying access to
the extensive Chinese market and Chinese enterprises investing in Cambodia making the
most of Cambodia's preferential tariffs on exports to the United States (Sgueglia, 2025).
Along with the mechanisms described above, another key framework was China's soft
diplomacy towards Cambodia. While the world community grew concerned about human
rights abuses, rising levels of corruption, and misrule in the highest echelons of
government in Cambodia, China has not raised any questions on these grounds and has
continued to be a reliable and generous partner with continued absolute backing. This
was seen in the fact that China's diplomatic mission is the largest in Phnom Penh, and
financial investment in development has never stopped since then. In response to such
warm regard, Cambodia provided China with unlimited access to its own economy,
fulfilling any whims of its partner, for example, the repatriation of the Uyghurs. Such a