Cambodia-China trade touches $5.6 billion in four months

Cambodia-China trade touches $5.6 billion in four months

Bilateral trade between Cambodia and China surged past $5.6 billion in the first four months of 2025, marking a robust 27 percent increase compared to the same period last year, according to a recent report from the General Department of Customs and Excise (GDCE).

The GDCE’s latest trade data shows total trade volume between the two countries reached $5.69 billion from January to April 2025, up from $4.48 billion during the corresponding period in 2024.

Cambodian exports to China, however, saw a slight dip of 1.7 percent year-on-year, totalling $478.63 million. In contrast, imports from China jumped significantly by 30.5 percent, reaching $5.21 billion.

The data underscores the growing economic ties between the two countries, with China remaining one of Cambodia’s largest trading partners and a key source of consumer goods, raw materials, and industrial equipment.

However, Cambodia continues to maintain a trade surplus with China, largely driven by its role as a low-cost production hub, Lor Vichet, Vice President of the Cambodia Chinese Commerce Association (CCCA), said.

Speaking to Khmer Times, Vichet pointed to data from GDCE that consistently highlights this trade imbalance, underscoring both opportunities and vulnerabilities within the Kingdom’s export-driven economy.

“Cambodia has become a favored investment destination due to its competitive production costs,” Vichet said. “But the reality is that most of the products we export—like garments, shoes, and luggage—rely heavily on imported raw materials.”

He warned that Cambodia’s dependence on foreign inputs, especially from China, could pose long-term economic challenges amid growing global trade uncertainties. To address this, Vichet urged the government and private sector to explore alternative trade routes and invest in strengthening domestic supply chains.

One of his key recommendations is to scale up local manufacturing of essential materials such as fabric, zippers, buttons, and leather. While acknowledging that the production of large machinery remains a significant challenge, Vichet believes developing local raw material industries could gradually reduce Cambodia’s reliance on Chinese imports and help balance the bilateral trade relationship.

“Currently, Cambodia exports only a small volume of agricultural products to China,” he added. “Expanding and improving the competitiveness of this sector could further diversify our exports and enhance economic stability.”

Vichet’s remarks come at a time when policymakers are exploring strategies to deepen economic resilience and promote industrial self-sufficiency, as the country continues to integrate into regional and global supply chains.

Economic analysts suggest that the uptick in trade is being driven by deepening bilateral cooperation under the Regional Comprehensive Economic Partnership (RCEP) and the Cambodia-China Free Trade Agreement (CCFTA), which came into effect in 2022.

Officials from the Ministry of Commerce (MoC) have also pointed to increasing Chinese investments in Cambodian infrastructure, logistics, and manufacturing as contributing factors to the trade expansion.

Despite the widening trade imbalance, experts note that Cambodia’s long-term trade outlook with China remains positive, especially as efforts to boost local production and diversify exports continue to take shape.

During a recent forum on ‘Cambodia-China Relations in a New Context,’ Penn Sovicheat, Secretary of State and Spokesman for MoC, underscored the expanding economic cooperation between Cambodia and China, noting that the partnership has played a vital role in promoting economic growth, investment, trade, and infrastructure development.

Sovicheat highlighted that the two nations share a common vision for development, resource sharing, security, and cultural exchange—reflecting a strategic and evolving alliance.

A key achievement in this partnership is the successful implementation of CCFTA, which has led to a continuous increase in bilateral trade volume. Cambodian exports to China mainly include agricultural products such as rice, cashews, cassava, and fish.

He emphasized that “trade cooperation is encouraging Cambodian producers to shift from exporting raw materials to developing finished products, driven by market demand and consumer expectations. This transition is helping the country add value and improve its position along the production chain”.

He also pointed out that the Ministry of Commerce is actively promoting Cambodian brands and domestic products. These efforts aim to strengthen local industries, raise quality standards, and enhance Cambodia’s competitiveness in regional and global markets, while attracting more foreign investment.

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