Phnom Penh, July 17, 2025 — Despite rising global uncertainties and shifting geopolitical dynamics, Cambodia and China have continued to strengthen their strategic partnership, driving a significant surge in bilateral trade. In the first half of 2025, trade between the two nations reached $9.28 billion, representing a 26.9% increase compared to the same period last year, according to the General Department of Customs and Excise (GDCE).
The Cambodia–China trade accounted for 30.34% of Cambodia’s total international trade volume of $30.57 billion during the January–June 2025 period. However, the trade remained heavily imbalanced. Cambodian exports to China stood at $750.62 million—a 7.9% year-on-year decrease—while imports from China soared to $8.53 billion, a 31.2% increase. This widened Cambodia’s trade deficit with China to $7.78 billion, up from $5.68 billion in the same period of 2024.
Deepening Cooperation Amid Global Challenges
The growing trade volume reflects the strength of political and economic ties between the two nations. On July 15, Cambodian Prime Minister Samdech Thipadei Hun Manet received a courtesy call from Chen Zhou, Vice Minister of the International Liaison Department of the Communist Party of China (CPC), at the Peace Palace.
Chen highlighted the success of bilateral cooperation and emphasized the importance of continued engagement amid complex global challenges.
“In the context of continued global uncertainty and increasingly complex geopolitical and economic dynamics, strengthening and expanding cooperation between the two countries at all levels and in all sectors is increasingly important,” he stated. “This requires both countries to deepen and broaden bilateral cooperation — at the government-to-government and party-to-party levels — and to continue cultivating the next generation of capable youth leaders to lead their countries in the future.”
Chen also referred to Chinese President Xi Jinping’s state visit to Cambodia in April as a strong signal of the growing momentum in bilateral relations.
Also read, Cambodia Secures Approval to Export Durians Directly to China
An “All-Weather” Partnership
Prime Minister Hun Manet praised the current state of Cambodia-China relations, describing them as an “all-weather comprehensive strategic partnership” that continues to deliver benefits across sectors. He reiterated the central role of the youth in building stronger long-term ties.
“The excellent cooperation at all levels of our bilateral relationship is inseparable from the deep connection between our two ruling parties, with youth playing a central role,” he said.
Drivers Behind the Trade Surge
Lor Vichet, Vice-President of the Cambodia Chinese Commerce Association (CCCA), noted that strong political ties, geographic proximity, and favorable market conditions have contributed to the robust trade growth.
“The trade imbalance exists because Cambodia imports a lot of raw materials from China for further processing before export. This volume will increase even more as Cambodia receives more export orders from developed countries,” he explained.
He also highlighted the role of Chinese investors in Cambodia’s economic development, particularly in special economic zones (SEZs), where many Chinese enterprises have established operations in manufacturing, logistics, and infrastructure.
Vichet urged Cambodian businesses and the government to explore export opportunities in the Chinese market to help narrow the trade gap. “Cambodia must identify high-demand products that can penetrate the Chinese market and focus on improving export competitiveness,” he added.
Rising Chinese Investment in Cambodia
According to data from the Ministry of Commerce, 2,921 Chinese businesses were registered in Cambodia in 2024—an increase of 20.65% compared to 2023. This growth reflects active efforts from both governments and private-sector stakeholders to enhance trade and investment collaboration.
Ongoing initiatives such as business dialogues, provincial roadshows, and sector-specific forums have played a key role in attracting more Chinese enterprises to Cambodia.
Outlook for 2025
The GDCE reported that in 2024, total trade between Cambodia and China reached $15.19 billion, up 23.8% from the previous year. Imports from China rose by 24.6% to $13.44 billion, while Cambodian exports to China grew by 18.4% to $1.75 billion.
With the trade value already exceeding $9 billion in the first six months of 2025, Cambodia and China are poised to achieve another record-breaking year. Officials and experts agree that the trajectory of bilateral relations is set to remain strong, driven by political goodwill, strategic alignment, and increasing business engagement.
As Cambodia continues to diversify its industrial base and attract export-oriented investment, observers suggest that opportunities exist to rebalance trade with China by promoting agriculture, processed foods, and high-value manufacturing.
Also read, Cambodian-Chinese Agricultural Partnership Grows: Banana Exports to China Set to Rise 50% in 2025
