Xi Jinping strengthens China-Cambodia ties amid new US tariffs

Chinese president deepens trade and diplomatic relations with Cambodia as Beijing faces rising tariffs from Washington.

China's President Xi Jinping and Cambodia's King Norodom Sihamoni walk together following a meeting at the Royal Palace in Phnom Penh on April 17, 2025. Photo by Tang Chhin Sothy/AFP

By Anna Fadiah and Hayu Andini

Chinese President Xi Jinping wrapped up his Southeast Asia diplomatic tour on Thursday with a high-profile visit to Phnom Penh, where he met Cambodian leaders and solidified what both sides called an “iron-clad” friendship. As Xi Jinping strengthens China-Cambodia ties, the trip underscored Beijing’s push to fortify its influence in the region amid a mounting trade conflict with the United States.

The visit, which followed Xi's earlier stops in Vietnam and Malaysia, came at a critical moment for China’s economic diplomacy. Xi is seeking new trade alliances and regional support in response to a sweeping set of tariffs recently imposed by U.S. President Donald Trump. China has responded with equally harsh retaliatory measures.

Cambodia welcomes Xi Jinping with royal ceremony

Upon his arrival in Phnom Penh, Xi was greeted by King Norodom Sihamoni in a military welcome ceremony, a gesture underscoring the importance Cambodia places on its relationship with China. The pageantry continued as Xi met with Cambodian Prime Minister Hun Manet and his father, former leader Hun Sen. Photos and video footage of the meetings were posted to social media by both Cambodian leaders, showcasing what they described as a historic day for bilateral relations.

“China and Cambodia have set a model for equality, mutual trust and win-win cooperation between countries of different sizes,” Xi told the Cambodian monarch, according to China’s state-run news agency Xinhua.

Hun Manet echoed that sentiment, calling the visit a reaffirmation of an “iron-clad friendship.” In a video posted to his social media, the Cambodian leader emphasized that the relationship was grounded in “respect for sovereignty, equality, and non-interference in internal affairs.”

Dozens of new agreements to deepen economic ties

As part of Xi’s visit, China and Cambodia signed 37 bilateral agreements covering sectors ranging from agriculture and water management to infrastructure development and education. The Cambodian prime minister noted on Facebook that these deals were aimed at strengthening long-term cooperation and accelerating the kingdom’s economic development.

Xi Jinping’s Cambodia tour was not just symbolic—it reflected tangible economic ties. China is Cambodia’s largest trading partner and foreign investor. According to data from the International Monetary Fund, more than one-third of Cambodia’s $11 billion in foreign debt is owed to China.

During Thursday’s talks, Xi promised to expand China’s imports of Cambodian agricultural products, a key sector in the kingdom’s export economy. “China will open its mega-market to Cambodia,” he was quoted as saying by Xinhua.

Trade tensions with the US loom over visit

While Xi Jinping strengthens China-Cambodia ties on his tour, his efforts are also a direct counter to economic pressure from the United States. On April 2, President Trump announced sweeping new tariffs targeting a range of countries, including Cambodia, as part of what he dubbed “Liberation Day” for American industries. Cambodia was hit with some of the highest levies—49 percent—before being granted a 90-day pause for negotiation, which China was notably excluded from.

China now faces new tariffs as high as 145 percent on key exports to the US. In response, Beijing has dismissed the measures as a “joke” and implemented its own retaliatory tariffs—up to 125 percent—on American goods. This escalating trade war has pushed Xi to seek economic allies elsewhere, and Southeast Asia has become a vital arena for this diplomatic outreach.

Xi made his position clear during his visit with Cambodian leaders. “Trade wars undermine the multilateral trading system and disrupt global economic order,” he said, adding, “Unilateralism and hegemonism receive no support of the people.”

Cambodia balances economic diplomacy

In the face of rising global tensions, Cambodia appears keen to maintain its strong partnership with China while also signaling openness to the United States. According to the Cambodian Ministry of Commerce, Hun Manet sent a letter to Washington expressing “good faith to negotiate a mutual solution” and pledging to lower tariffs on 19 categories of American goods.

That dual-track approach reflects Cambodia’s need to balance economic opportunities from both global powers. While China’s presence in Cambodia is deeply entrenched—from massive infrastructure investments to real estate projects—there remains an interest in diversifying trade partners and preserving diplomatic flexibility.

This week also marked the 67th anniversary of China-Cambodia diplomatic relations, as well as 50 years since the fall of Phnom Penh to the Khmer Rouge—a reminder of Cambodia’s turbulent past and its ongoing effort to build a stable economic future.

Southeast Asia tour signals China’s long-term strategy

Xi’s Southeast Asia tour has highlighted a broader strategic shift in China’s foreign policy. As the world's second-largest economy braces for extended tensions with the US, Beijing is focusing on consolidating influence in its immediate neighborhood. Vietnam, Malaysia, and Cambodia—countries with growing economies and significant geopolitical importance—are key targets in this regional engagement strategy.

In Vietnam, Xi and Communist Party officials discussed streamlining Belt and Road Initiative projects. In Malaysia, he emphasized collaboration in digital infrastructure. But in Cambodia, the message was clearest: China is not only a partner but also a protector of shared values against what Xi described as foreign interference and coercion.

Implications for the region and beyond

The timing of Xi’s visit and the array of new agreements suggest that China is accelerating its efforts to construct a buffer of friendly nations amid a fraying global trade system. By strengthening ties with Cambodia, Xi not only reinforces China’s geopolitical presence but also creates leverage in future negotiations with the West.

For Cambodia, the benefits are immediate—investments, trade guarantees, and political support. But the long-term costs, such as debt dependency and overreliance on a single partner, remain critical issues for policymakers in Phnom Penh to navigate.

As China and the United States continue to clash over trade, technology, and geopolitical influence, smaller nations like Cambodia find themselves both courted and pressured by the two giants. Xi Jinping’s Cambodia visit may have underscored friendship, but it also reminded the world of the shifting dynamics in global power relations—where regional cooperation has become a battleground for superpowers.

A future shaped by economic alliances

Looking ahead, China’s expanding role in Cambodia will likely continue to reshape the kingdom’s economic and political landscape. Whether this leads to greater prosperity or dependency remains to be seen. What is clear, however, is that as Xi Jinping strengthens China-Cambodia ties, the strategic importance of this relationship will only grow in a world increasingly divided by trade disputes and ideological rivalry.