China and Cambodia Ink Deal for Scaled-Down Funan Techo Canal

On April 19, 2025, China and Cambodia solidified their partnership through agreements to enhance supply chain stability and transportation infrastructure, as outlined in a joint statement from China’s foreign ministry. A key deal involves constructing the Funan Techo Canal, now scaled down to US$1.16 billion and 151.6km, aimed at boosting Cambodia’s economy via a public-private partnership (51% Cambodian, 49% Chinese investors).

Funan

This was part of Chinese President Xi Jinping’s South-east Asia tour, strengthening ties amid U.S. tariff tensions. The nations also committed to deeper law enforcement cooperation, targeting illegal online gambling and telecom fraud, and established a ministerial dialogue for strategic coordination. Cambodia’s deportation of Chinese criminals, including Taiwanese, to China was praised by Beijing but criticized by Taipei.

Quote: “China supports Cambodia in building the Funan Techo Integrated Water Conservancy Project in accordance with the principles of feasibility and sustainability,” highlighting the collaborative and pragmatic approach to this transformative infrastructure project.

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