Cambodia is in a strategically challenging position. It has close relations with two rival countries – Vietnam and China. In recent years, Cambodia has found itself in a difficult situation caused by the dispute between China and Vietnam over South China Sea issues and the challenges concerning the Mekong River. These geopolitical challenges have left little room for Cambodia to maneuver its foreign policy. Considering the ongoing strategic rivalry between Beijing and Hanoi, Phnom Penh has to carefully manage its foreign relations to balance between these two countries, both of which are its close friends. Failing to walk the diplomatic and geopolitical tightrope effectively poses significant economic and security risks for Cambodia.