China and Cambodia have a longstanding and resilient friendship that has stood the test of time, characterized by their close geographical proximity and deep-rooted diplomatic ties. In 2023, the two nations celebrated the 65th anniversary of their diplomatic relations and the “China-Cambodia Friendship Year,” coinciding with the 10th anniversary of the Belt and Road Initiative. Throughout the year, high-level exchanges between the two countries played a pivotal role in shaping the future of their bilateral relations.
In February 2023, Prime Minister Hun Sen’s successful visit to China set the stage for a comprehensive cooperation framework termed the “Diamond Hexagon.” This framework spans six key areas: politics, production capacity, agriculture, energy, security, and people-to-people exchanges. The goal is to create a high-quality, high-level, and high-standard China-Cambodia Community with a Shared Future in the New Era.
In September, Prime Minister Hun Manet’s inaugural visit to China since assuming office reinforced the commitment to align the Belt and Road Initiative with Cambodia’s Pentagonal Strategy. The emphasis remained on the “Diamond Hexagon” cooperation framework, deepening the comprehensive strategic partnership and fostering high-quality and sustainable mutual development.
In October, Prime Minister Hun Manet’s participation in the Third Belt and Road Forum for International Cooperation solidified the action plan for building a China-Cambodia Community with a Shared Future in the New Era. Key initiatives included the establishment of the “Industrial Development Corridor” and the “Fish and Rice Corridor,” as well as the implementation of people-centric projects.
Under the strategic guidance of both nations’ leaders, China-Cambodia economic and trade cooperation reached new heights in 2023.
Bilateral trade between China and Cambodia expanded significantly, driven by the Regional Comprehensive Economic Partnership (RCEP) and the China-Cambodia Free Trade Agreement (CCFTA). China retained its position as Cambodia’s largest trading partner for the 12th consecutive year. Between January and November 2023, bilateral trade totaled $13.42 billion, with China importing $1.85 billion from Cambodia—an 11.3% year-on-year increase.
Cambodian agricultural exports to China surged in 2023. Products like Cambodian peppercorns, edible aquatic animals, and wild aquatic goods successfully entered the Chinese market. Agreements were signed for exporting Cambodian fresh coconut fruits, bird’s nests, deli meat products, and crocodiles to China. China became the top export destination for Cambodian rice, bananas, and longan in 2023.
Both countries leveraged international events and cross-border e-commerce platforms to promote Cambodian products, generating successful results. Capacity-building programs further improved Cambodian officials’ understanding and application of trade rules, facilitating the export of high-quality Cambodian goods to China and ASEAN markets.
Investment cooperation made a significant contribution to Cambodia’s economic growth. Chinese enterprises invested over $3 billion in Cambodia in 2023, spanning sectors like transportation, electricity, agriculture, manufacturing, tourism, special economic zones, and information technology.
Projects like the Sihanoukville Special Economic Zone (SSEZ), Siem Reap Angkor International Airport, Phnom Penh-Sihanoukville Expressway, and Upper Tatay Hydropower Station, all implemented under the build-operate-transfer (BOT) model, have been milestones in fostering economic growth and job creation.
Chinese enterprises have built and operated 10 hydropower stations and 2 thermal power stations in Cambodia, accounting for 63.8% of the country’s total installed capacity. SSEZ alone attracted $2.27 billion in cumulative investment and created 30,000 local jobs.
Numerous projects enhancing livelihoods made significant progress. China’s contributions included nearly 4,000 kilometers of roads and 9 major bridges in Cambodia. Additionally, vital infrastructure projects, such as the Mekong River Bridge and the Upgrading Project of NR7, were initiated.
In May, the completion of the 500kV Backbone and Sub-region Transmission Line Project marked a strategic milestone for Cambodia’s energy development. Chinese aid in sport technical assistance contributed to Cambodia’s record performance at the 32nd Southeast Asian Games.
The Phnom Penh Ring Road No.3, funded by China’s Preferential Buyer’s Credit, alleviated traffic congestion in the city, enhancing urban mobility. In October, the China-Cambodia Traditional Chinese Medicine Center was inaugurated at the China-Cambodia Friendship Preah Kossamak Hospital.
In 2023, China provided training to nearly 1,200 Cambodian individuals across various fields, fostering human capital development and knowledge exchange.
As the Action Plan on Building a China-Cambodia Community with a Shared Future in the New Era takes effect in 2024, and with the China-Cambodia Year of People-to-People Exchanges underway, the prospects for economic and trade cooperation between the two nations remain promising. China is committed to working closely with Cambodia to expand trade, deepen investment cooperation in emerging sectors like digital economy and green development, and facilitate trade and investment, ultimately enriching the China-Cambodia “Diamond Hexagon” cooperation framework and bringing mutual benefits to both nations and their people.
