China is strengthening its position as Cambodia's biggest investor, with investment in the industrial sector amounting to almost $550 million in January 2025 alone, according to data from the Cambodian Investment Board (CIB).
These investments illustrate Beijing's commitment to the Kingdom, despite the turbulence in world trade and disruptions to supply chains. The investments, totalling exactly $548.65 million, are mainly concentrated in the manufacturing and agro-industrial sectors, as well as in special economic zones.
“These investments are perfectly aligned with Cambodia's strategy to diversify its economy beyond textiles and agriculture,” said the CDC.
Despite trade tensions and geopolitical uncertainties between China and the USA, these investments illustrate Beijing's desire to position Cambodia as a regional production and assembly hub.
Some analysts attribute this confidence to the rapid expansion of infrastructure projects in the country and the political alignment between Hun Manet's government and Beijing.
According to the CDC, Chinese investment is expected to generate more than 12,000 jobs, mainly in the garment and electronics assembly sectors. Chheng Kimlong, Director of the Centre for Governance Innovation at the Asian Vision Institute, said that China's outward direct investment was not just about capital, but also about securing a strategic foothold in the economy of the ASEAN region, which is one of the fastest growing in the world.
Comments