China-Cambodia trade hits record high in Q1 amid deepening economic ties

China-Cambodia trade hits record high in Q1 amid deepening economic ties

With six consecutive quarters of growth, China-Cambodia trade surged to a historic high of 33.33 billion yuan ($4.53 billion) in the first quarter of 2025, a 13.1 per cent year-on-year increase, according to Chinese customs data. This growth outpaced the rate of China’s overall trade expansion with ASEAN countries by six percentage points, CCTV reported on Thursday, highlighting the strength and resilience of bilateral economic ties.

Agricultural trade has been a standout. China’s imports of Cambodian agricultural products grew by 12.2 per cent to 980 million yuan in the first quarter, making up 25.9 per cent of total imports from the country. Chinese customers have consumed key items like fresh longan, cassava chips, and cocoa powder. For instance, imports of cassava chips surged 879.7 per cent year-on-year, while imports of cocoa powder grew by 133.6 per cent.

Meanwhile, Chinese agricultural exports to Cambodia rose by 61.9 per cent to 640 million yuan.

“China-Cambodia trade has achieved consistent double-digit growth, fueled by strong economic complementarity,” Zhou Shixin, director of the Institute for Foreign Policy Studies at the Shanghai Institute for International Studies, told the Global Times on Thursday, noting that Cambodia’s transition from agriculture to light manufacturing has created key opportunities.

The automotive sector also experienced significant growth, with Chinese exports of vehicles and lithium batteries to Cambodia rising sharply. In the first quarter, China exported 840 million yuan worth of automobiles to Cambodia, up 183.7 per cent, while exports of lithium batteries rose 465.7 per cent to 100 million yuan.

At the same time, imports of Cambodian natural rubber, a crucial component for tire production, nearly quadrupled, highlighting the strengthening industrial collaboration between the two countries.

Similarly, the textile trade remained robust, as China’s fabric exports to Cambodia rose for the seventh consecutive quarter, per the CCTV report.

According to Zhou, the Free Trade Agreement and the Regional Comprehensive Economic Partnership further consolidate trade and bilateral cooperation.

Cross-border yuan transactions between China and Cambodia have surged this year. In the first quarter, the value reached 5 billion yuan, a 45 per cent increase year-on-year, with goods trade accounting for 1.3 billion yuan, up 23 per cent, the Xinhua News Agency reported on Wednesday, citing data from the People’s Bank of China (PBC), the central bank.

The upward trend reflects broader trading momentum, as cross-border yuan settlements doubled in 2024 to about 20 billion yuan. Goods trade made up 4 billion yuan of that total, representing 9 per cent of all bilateral trade settlements. This growth underscores the yuan’s expanding role in facilitating trade between China and Cambodia, supported by ongoing improvements in local currency policies, the PBC said, according to Xinhua. 

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