China continues to hold a central position in Cambodia’s foreign policy despite changes in the geopolitical landscape of both countries. Growing ties were exemplified through the establishment of the Diamond Hexagon Cooperation Framework in early 2023. This project focuses on comprehensive engagement across six areas of collaboration: politics, manufacturing, agriculture, energy, security, and cultural exchanges.
Regardless of these significances, some experts on Cambodia-China relations have observed that the Diamond Hexagon Cooperation Framework has yet to gain significant momentum. They urge both nations to prioritize this framework, particularly in key areas such as artificial intelligence (AI), science and technology, digital trade, and green innovation. They argue that strengthening collaboration in these sectors will solidify the “Ironclad friendship” between Cambodia and China and serve their mutual interests in an increasingly uncertain global landscape.
A Strong Yet Cautious Partnership
The continuity of leadership under Prime Minister Hun Manet, with the backing of his father, former Prime Minister Hun Sen, has ensured that Cambodia’s foreign policy remains closely aligned with China. This has provided stability to the relationship, particularly in economic cooperation, despite the broader global shifts. The Diamond Hexagon Cooperation Framework, which was built in February 2023 under Hun Sen’s rule, started from six major areas of politics, production capacity, agriculture, energy, security, and people-to-people exchange, and to build a high-quality, high-level, and high-standard China-Cambodia Community with a Shared Future in the New Era has become central to this partnership, symbolizing the enduring commitment between the two nations.
Read More: Opinion – Current Cambodian Economy and Challenges Moving Forward in 2024
Vice President of the Cambodia Chamber of Commerce Lim Heng highlighted the importance of the framework in building confidence among Chinese investors. “The agreements established during former Prime Minister Hun Sen’s visit to China have been upheld under the current leadership, ensuring continuity,” he said. This sentiment is echoed by the recent success of the Cambodia-China Business Forum, which further solidified the economic ties between the two countries.
Diamond Hexagon Cooperation Framework Implementation
However, the Diamond Hexagon Cooperation Framework implementation has not progressed as swiftly as anticipated. Critics point to the slow pace of development in key areas, such as agriculture modernization and industrial corridor projects, which have yet to see significant advancements. President of the International Relations Institute of Cambodia, Dr. Kin Phea, says, “The framework contains many key points, but substantial progress has been limited.”
One reason for this lag is China’s focus on domestic priorities in the post-COVID-19 era, which has reduced overseas funding, including for projects in Cambodia. This has tempered the momentum of the Cambodia-China partnership, even as both sides desire to deepen cooperation.
Strategic Collaboration in Emerging Sectors
Despite these challenges, Cambodia and China seek to invigorate their relationship through strategic collaboration in emerging sectors. Both countries have outlined comprehensive plans to enhance cooperation in AI, science and technology, digital trade, and green innovation. This ambitious agenda aims to bolster Cambodia’s technological infrastructure and promote sustainable development.
A significant step forward is the planned establishment of the “Cambodia-China Joint Committee on Science, Technology, and Innovation,” which will oversee technology transfer and foster people-to-people exchanges. Additionally, China supports Cambodia’s digital transformation, focusing on education and vocational training to develop a skilled workforce ready for the digital age.
One notable initiative is the involvement of BYD, a leading Chinese electric vehicle (EV) manufacturer, which plans to establish an EV assembly plant in Cambodia. This move aligns with China’s broader strategy to expand its green technologies and electric vehicle market. While the plant is expected to create jobs and stimulate local industries, its long-term impact on Cambodia’s industrial capacity remains debatable.
Kin Phea expresses skepticism, suggesting that establishing the BYD factory might be more of a strategic maneuver than a commitment to deep innovation in Cambodia. “While the factory aims to position Cambodia as a player in the green technology sector, China’s primary objective may be to circumvent potential sanctions rather than make substantial investments in Cambodia’s industrial sector,” he noted.
While the BYD plant may boost Cambodia’s position in the Southeast Asian EV market, it is expected to not lead to significant technology transfer or industrial development.
For Phea, Cambodia’s heavy industry lacks long-term Chinese investment, which is crucial for sustainable economic growth. “In discussing manufacturing, we see a gap in long-term Chinese commitments to Cambodia’s heavy industry. This sector needs attention, starting with stimulating manufacturing activities and facilitating technology transfer. Investments should bring in new technologies and focus on building a robust heavy industry,” he said.
He added that China’s current investments in Cambodia are largely centered around mining, minerals, and other natural resources—sectors that do not enhance Cambodia’s export capabilities.
“We also observe industries that primarily focus on assembly. For instance, BYD’s plans to assemble vehicles in Cambodia do not include a full-fledged manufacturing facility. We need investments that foster technology transfer and develop a skilled Cambodian labor force,” he added.
Looking Ahead: Opportunities and Challenges
Beyond the immediate projects under the Diamond Hexagon Cooperation Framework, China is exploring additional connectivity initiatives with Cambodia and the broader Southeast Asian region. These efforts are part of the Belt and Road Initiative (BRI) and align with the ASEAN Master Plan on Connectivity (MPAC) 2025. Planned projects include enhancing railways, ports, and airports and developing digital and energy infrastructure—all of which are expected to accelerate Cambodia’s economic growth.
Competition and strategic considerations may influence the future of these projects. According to Lim Heng, China and the Royal Group, led by tycoon Kith Meng, are competing to build a high-speed railway from the capital, Phnom Penh, to Poi Pet, a border city crucial for the link between Cambodia and Thailand. Even if the Royal Group wins the bid, Chinese technical expertise will likely be involved.
All in all, Cambodia’s relationship with China remains robust, characterized by deep economic ties and strategic cooperation. While Cambodia’s engagements with the United States and other nations may evolve, the foundation of its partnership with China is expected to endure, particularly through the Diamond Hexagon Cooperation Framework. However, the success of this framework will depend on the ability of both countries to overcome implementation challenges and capitalize on emerging opportunities in AI, digital trade, and green innovation.
