China and Cambodia seal free-trade deal, funding for ‘priority’ projects
- Beijing offers US$140 million in loans and grants for series of infrastructure schemes, including undersea cable link to Hong Kong
- Agreements follow suspension of Phnom Penh’s special trade preferences with the EU

China has promised other agreements with Cambodia, which is largely seen as one of China’s closest allies in the 10-member Association of Southeast Asian Nations.
On top of the free-trade deal, which followed almost a year of formal talks, Beijing has agreed to offer loans and grants for eight infrastructure projects that Cambodia has identified as “top priority”.
These projects include an undersea fibre-optic communications cable between the coastal city of Sihanoukville and Hong Kong, construction and expansion of national roads, and construction of a power transmission plant.
Mark Wong, Cambodia CEO of Chinese tech giant Huawei, said last year that the company planned to team up with China Communications Construction on the undersea cable project, but no official plans have been announced since then.