After Chinese President Xi Jinping concluded his five-day, three-nation Southeast Asia tour in Phnom Penh with 37 new agreements signed, Prime Minister Hun Manet stressed that Cambodia is not taking sides in the ongoing U.S.-China rivalry. Instead, he reaffirmed that the country seeks cooperation with both powers to strengthen its economy. 

Speaking at the inauguration of the Kampot International Tourism Port on April 21, Hun Manet reiterated Cambodia’s choice of cooperation over confrontation by maintaining a neutral foreign policy.

“Cambodia chooses both countries [U.S. and China] to ensure the health of the economy,” he said. “This is the government’s choice, and Cambodia has independence and sovereignty in making its own decisions. No one can pressure us.”

His comment comes after Xi’s visit from April 17 to 18 amid U.S. protectionist trade policies, impacting both China and Cambodia, although Cambodia and the rest of the retaliatory tariff-imposed countries were granted a 90-day reprieve. China was excluded from the tax moratorium.

During Xi’s visit, 37 agreements were signed covering areas including trade, education, finance, and tourism. In addition, a few business-to-business and public-private partnership deals were also announced, including support for the Funan Techo Canal.

Hun Manet dismissed claims by opposition groups abroad that Cambodia had surrendered its autonomy on its economy and security to China. Referring to a joint statement issued during Xi’s visit, Hun Manet said Cambodia and China reaffirmed mutual respect for national sovereignty and opposition to foreign interference in internal affairs.

“We are friends with all countries. We do not consider any country an enemy,” he added.

Addressing criticism that Cambodia is becoming overly reliant on Chinese investment, he said in 2023, Chinese investment in the United States reached $28 billion, and a total of $25 billion in ASEAN. Singapore received the most Chinese investment in the region, amounting to $13 billion, while Cambodia ranked eighth with just $300 million.

Hun Manet challenged the narrative that Chinese investment undermines Cambodia’s sovereignty, pointing out that the United States itself received $28 billion in Chinese investment. He emphasized that foreign investment should not be equated with a loss of sovereignty, rather it should be viewed as a mechanism for joint development that advances national interests.

He also underscored Cambodia’s commitment to a multilateral approach to security cooperation, citing the inauguration of Ream Naval Base which was expanded with Chinese assistance on April 5. This was followed by the visit of Japanese naval vessels on April 19, demonstrating Cambodia’s openness to working with all partners.

Hun Manet said Cambodia will work hard to negotiate with the United States on tax issues, as it faces the prospect of new tariffs. The temporary relief has offered room for negotiation on the proposed 49% tariff on Cambodian goods —the highest in the region.

The day before Xi’s arrival in Phnom Penh, Cambodian officials held a virtual meeting with the U.S. Trade Representative to explore ways to enhance trade relations. The discussion took place following a letter by Prime Minister Hun Manet to President Donald Trump. Both parties pledged to maintain open dialogue and continue negotiations.

While Xi’s visit saw numerous cooperation agreements, no grants or loans were announced for major infrastructure projects. Five MOUs were signed for the Funan Techo Canal with Chinese state-owned firms, though details on the private sector deal were not disclosed.

In light of zero grants or loans, Hun Manet dismissed speculations of China withdrawing support, and that negotiations are ongoing, both sides remaining committed.

“There has never been a time when the Chinese government refused to support this project.”

In a virtual press conference, Wang Wenbin, Chinese Ambassador to Cambodia, said China supports Cambodia’s construction of the Funan Techo Integrated Water Resources Management Project in line with principles of viability and sustainability.

Responding to CamboJA News via email, the U.S. Embassy in Phnom Penh said their government has supported Cambodia’s development through close cooperation and shared achievements over the past three decades. Looking ahead, Washington hopes to see a constructive evolution in its relationship with Phnom Penh while advancing its own national interests. 

“We are not asking Cambodia to choose between the United States and China,” the embassy said. 

Ro Vannak, a political commentator, told CamboJA News that the notion that Cambodia is dependent on China is the main concern among socio-economic and political observers.

He points to Cambodia’s perceived alignment with China’s geopolitical agenda in recent years—particularly its support for Beijing in regional forums—as evidence of a “biased stance”.

The Cambodian government again reaffirmed its commitment to the “One-China” policy when Xi was in Phnom Penh, he said, noting that the close relationship with China makes Cambodia vulnerable to geopolitical pressure, given its small size and China’s strong economic influence.

As a key player in China’s Belt and Road Initiative, Cambodia is seen as strategically important to Beijing. The U.S. often views Cambodia through the lens of Chinese influence—an impression that, while not entirely accurate, reflects Washington’s growing concerns.

In addition, he said, the U.S. viewing Cambodia through China’s eyes is “not good” for the Cambodian government or her people. “The geopolitical rivalry between China and the U.S. is intense, making small countries like Cambodia susceptible to power struggles.”

However, Vannak found Hun Manet’s call for balance reasonable, suggesting that Cambodia pursue a “hedging strategy” to maintain neutrality and avoid pressure from either side. 

That said, he stressed that “words must be backed by action”. He noted that the new government is showing signs of diversification and urged Cambodia to serve as a bridge in the Indo-Pacific region by promoting dialogue, trade, and cultural exchange.

“Hedging serves Cambodia’s national interest,” he said. “It allows the country to preserve sovereignty, attract investment from major powers, and avoid being seen as a threat to anyone’s strategic interests.” 

If the U.S. no longer views Cambodia as a “pawn” of China, it could open the door to greater benefits from Washington that could improve the standard of living in Cambodia. To succeed, he said, Cambodia must also strengthen its institutional capacity and uphold the rule of law.