At the groundbreaking of the Funan Techo Canal (FTC) this past August, Cambodian Prime Minister Hun Manet hailed the project as a “symbol of patriotism and national unity.” Cambodia hopes that the canal, funded 51 percent by Cambodia and 49 percent by China, can boost its trade by connecting to deep-water ports along Cambodia’s coastline—some, such as the Sihanoukville port, also funded by China—thus reducing reliance on Vietnam. The $1.7 billion project is over 5 percent of Cambodia’s GDP in 2023 ($31.77 billion, according to the World Bank).
Foreign observers see the FTC as a testament to China’s pervasive and growing influence in Cambodia. Cambodia’s neighbors, like Vietnam, are concerned about its potential negative impacts on the Mekong Delta, a major rice-growing region, and its potential military use, echoing the controversy surrounding the Ream Naval Base upgrade.
Today, China is Cambodia’s largest investor, trading partner, and donor. In contrast, the U.S. government and its allies have imposed sanctions and cut funding for perceived human rights violations, driving Phnom Penh further into Beijing’s arms.
In full: https://www.cfr.org/blog/why-china-investing-17-billion-canal-cambodia
