When China Comes Calling, But Leaves the Checkbook at Home
It’s always curious when a man with deep pockets flies into town, shakes hands, gives a rousing speech about friendship and standing up to bullies—and then boards his plane without dropping a dime. That’s what just happened in Phnom Penh.
China’s President Xi Jinping wrapped up his little Southeast Asia tour with a stop in Cambodia this week. There were hugs, handshakes, and headlines. What there wasn’t—at least not publicly—was money. And for a country like Cambodia, which is knee-deep in debt and desperate for infrastructure funds, that matters.
But let’s not get ahead of ourselves.
Protectionism, Tariffs, and the Usual Blame Game
Xi Jinping had some strong words. “Resist protectionism,” he told Cambodia’s political strongman Hun Sen, who now chairs the country’s Senate. Of course, when Xi says “protectionism,” he’s not talking about Chinese policy (God forbid). He’s wagging his finger at the United States, which has been slapping tariffs like it’s handing out Halloween candy.
Cambodia, for its sins—mainly being too close to Beijing—got hit with a whopping 49% tariff on its clothing and footwear exports to the U.S. That’s almost a death sentence for a country where garment factories are basically the economic backbone. Meanwhile, China is looking at combined tariffs of 145%. So yes, both are in the same sinking boat, at least economically.
Xi’s message? We’re all victims here—join us in the global pity party. But he wasn’t just whining. He had a goal: make sure Cambodia stays on China’s team. And he did it the only way he knows how—through grand speeches, vague promises, and not-so-subtle digs at the U.S.
Words Are Cheap. Infrastructure Isn’t.
Xi took the stage—figuratively, anyway—and sang the praises of past Chinese-funded projects in Cambodia. Roads, airports, shiny new buildings. The usual list. And yes, Cambodia even named a road after him. That’s how much they’ve rolled out the red carpet for Beijing.
But here’s the thing. While Xi was happy to pat himself on the back for what China has already done, he didn’t announce any new big-ticket items. Which is kind of a problem, because Phnom Penh was hoping he’d commit some serious cash to their crown jewel: the Funan Techo Canal.
Now, this canal isn’t just some ditch in the dirt. It’s a $1.7 billion dream that would connect Cambodia’s rivers to the sea—bypassing Vietnam, by the way—and supposedly turbo-charge trade. Cambodia’s government has been whispering sweet nothings about China footing the entire bill. Then it said 49%. Now… radio silence.
And here’s the kicker: last year, China signed zero new loan deals with Cambodia. Zero. Zilch. Nada.
So Why Is Xi Even Bothering?
Good question.
The answer lies in geopolitics, power, and that old-school game of influence. The U.S. is back in Asia in a big way, slapping sanctions, forming alliances, and trying to curb China’s influence wherever it can. Vietnam and Malaysia got visits from Xi earlier this week, where he repeated the same lines about “opposing hegemonism.” Translation: “Don’t listen to Uncle Sam.”
Cambodia is an easy win for Xi. Hun Sen has cozied up to China for years, taking loans, investments, and political cover when the West raised eyebrows over things like—oh, I don’t know—crushing dissent, silencing the press, and banning the opposition.
But even allies want more than just speeches.
A Canal, A Debt Trap, and a Whole Lot of Hot Air
Let’s talk about the Funan Techo Canal for a minute.
On paper, it sounds like a genius move. Build a 180 km waterway from the Mekong River near Phnom Penh all the way to the Gulf of Thailand. Cut down shipping time. Stop relying on Vietnamese ports. Show off a little national pride.
But in reality? It’s messy.
First, the environmental concerns. The canal would divert water from the Mekong Delta, a fragile area that’s already seeing its rice fields dry up. Farmers in Vietnam aren’t thrilled. Second, the price tag—$1.7 billion—is nearly 4% of Cambodia’s entire economy.
And third? Nobody’s really sure who’s paying.
Phnom Penh keeps changing its story. First, they said China would cover 100%. Then 49%. Now? Not even Xi wants to talk about it. He flew in, praised the partnership, then flew out. No contract. No cash.
If you’re Cambodia, that’s a problem.
The Bigger Picture: Words vs Wallets
Xi’s tour of Southeast Asia wasn’t about generosity. It was about loyalty. He wanted to remind these smaller countries—especially those caught in the middle of the U.S.-China spat—that Beijing is still a big player.
But here’s the thing: power without generosity gets old fast.
Sure, Xi can talk a good game. He can rail against “hegemonism” (his favorite word for U.S. influence) and throw around phrases like “mutual cooperation.” But when it comes time to cut checks, he’s gotten tight-fisted.
Last year’s numbers speak volumes. No new loans to Cambodia from Beijing. That’s a sharp contrast to the past, when Chinese money flowed like the Mekong during monsoon season.
Cambodia, like many developing countries, is starting to realize that China’s love comes with strings—and sometimes without the actual money.
And Now, Some Honest Questions
- If China truly wants to lead the global south, why is it pulling back on lending?
- Why are countries like Cambodia forced to choose between two economic giants, neither of whom seem to care much about actual people on the ground?
- And how long can Phnom Penh keep playing this double game—taking Western aid and Chinese investment—before one side calls their bluff?
These are the questions that don’t get asked when world leaders pose for smiling photos and cut ribbons on half-built highways.
A Final Thought
Xi came to Cambodia with speeches instead of support, with warnings instead of funding. Hun Sen smiled. The press printed headlines. And life went on.
Meanwhile, Cambodian workers still sweat in garment factories under grueling conditions. Rice farmers still wait for the rains. And the canal? Still a maybe.
But hey, at least there’s a road named after Xi.
