China-Cambodia: Friends Along the Mekong River
Jeanne-Mây Desurmont | 10 June 2024
Summary
Earlier this year, Cambodia announced the construction of the Funan Techo Canal, which will connect the Mekong River to the Cambodian coast. This project aims to decrease the country’s dependence on Vietnamese and Thai ports by facilitating direct exports, increasing export prices, and decreasing shipping costs.
Ultimately, Phnom Penh has argued that the 180km canal will improve the socio-economic context of the Cambodian population.
Cambodia has recently modernised parts of its Ream Naval Base. However, only two Chinese vessels were allowed to dock in the new part of the maritime port for at least a few months. No other -even Cambodian- ships were seen at this new pier constructed and funded by the PRC.
These instances have re-ignited tensions between Cambodia and Vietnam in an already volatile South-East Asian context. Ultimately, the strong relationship between Cambodia and China is worrying their regional neighbours alongside the U.S.
Hanoi promptly reacted when Cambodia announced the construction of a canal project that would span 180km and cost USD 1.7 billion. The future Funan Techo Canal is supposed to connect the Mekong River to the Gulf of Thailand and, more precisely, Cambodia’s only deep-sea port in Sihanoukville. China’s state-owned China Bridge and Road Corporation (CBRC) landed the development and construction bids. Under the Belt and Road Initiative framework, the CBRC and Cambodia have signed a Build-Operate-Transfer contract in which the CBRC will manage and profit from the canal for approximately 40 to 50 years, before transferring the management to the Cambodian government. In addition to many infrastructures, such as bridges and highways, the Funan Techo Canal is a key infrastructure developed and financed by China.
While some Vietnamese scholars expressed some apprehension about the security implications of such a project, they were brushed off by officials and other regional experts. Rather, Hanoi has vividly expressed its concerns about the environmental security of the vulnerable Mekong River. Researchers are worried that the Cambodian government is considering the canal as a tributary project to the river when it will directly impact the Mekong River. Potential environmental damages caused by the artificial canal range from significant landslides to shortages of water that are destroying rice paddies, which are crucial for food security in the region. Additionally, the canal could be used as a dam, blocking water from reaching the downstream Mekong in Southern Vietnam.
In addition to infrastructure development, Phnom Penh and Beijing are also strengthening their military and diplomatic relationships. This is illustrated by the two PLAN (People’s Liberation Army Navy) vessels stationed in the newly renovated pier of Ream Naval Base for a few months. This new pier has also been funded by China, and since its completion, only Chinese vessels have been stationed in this new part, while Cambodian ships have been moored at the base’s older pier. Alongside joint military drills, additional Chinese construction is underway at Ream Naval Base, which has already taken down U.S. and Australian-funded facilities.
Ultimately, a good relationship between Cambodia and China benefits both parties. As Cambodia gains infrastructure, funding, and exports to China, the PRC wins a precious ally in Southeast Asia. Strategically, Cambodia can voice China’s interests in ASEAN summits on important questions such as the South China Sea dispute. As China is progressively occupying and patrolling the SCS, Cambodia is also an important tactical base for Chinese vessels for supplies and technical support. Cambodia is an example of the BRI’s diplomatic success. As the PRC provides development aid without any normative conditions, Phnom Penh is balancing and aligning with China in the international forums.
damien_farrell/Wikimedia
Forecast
Short-term
As the Funan Techo Canal progresses, Cambodia needs to tread carefully with its neighbour to avoid any potential diplomatic crises. Vietnamese officials are wanting more transparency on the project over environmental concerns. Phnom Penh needs to reassure Hanoi that the canal will not block water from flowing downstream either accidentally or purposefully.
Long-term
China’s growing influence over Cambodia may start to worry ASEAN member states and the U.S., as China is demonstrating the strategic and economic success of its Belt and Road Initiative in Cambodia. In the regional and international geopolitical contexts, it is highly likely that China will profit strategically from its privileged relationship with Cambodia, forcing the U.S. and its allies to rethink their approach and their priorities to Southeast Asia and Indo-Pacific states.
