Cambodia is looking to reduce its reliance on China, its long-standing ally and largest foreign investor, as it seeks to shield its economy from the superpower rivalry between Washington and Beijing, its deputy prime minister has said.
China is Cambodia’s largest donor and trading partner, accounting for more than half of all investments into the country. It is also the largest source of raw materials for Cambodia’s export-focused manufacturing industry, making the latter vulnerable to US efforts to reduce Beijing’s role in global supply chains.
US President Donald Trump initially threatened Cambodia last year with 49 per cent tariffs — the highest rate after China. Phnom Penh has since managed to negotiate the levy down to 19 per cent, in line with its south-east Asian neighbours.