Cambodia Considers Trump Highway in Shift Away From China Influence

by Chief Editor

The Shifting Sands of Southeast Asian Diplomacy: When Roads Become Statements

For decades, Cambodia’s foreign policy has been visibly etched onto its infrastructure, quite literally. The naming of streets after Chinese leaders – Mao Zedong Boulevard a prime example – has been a longstanding symbol of gratitude for Beijing’s unwavering support. Now, a potential renaming of National Route 4 after Donald Trump signals a dramatic, and potentially precarious, reorientation. This isn’t simply about a name change; it’s a geopolitical chess move with significant implications for the region and beyond.

Why is Cambodia Looking West?

The impetus for this shift isn’t solely about courting favor with the US. A confluence of factors is at play. Cambodia, long perceived as heavily reliant on China, is facing increasing economic pressure from US tariffs, initially threatened at 49% before being lowered to 19%. This directly impacts its crucial garment and footwear industries, major suppliers to American brands like Nike. Furthermore, a recent border dispute with Thailand, resolved through Trump’s intervention and a Nobel Peace Prize nomination for the former president, highlighted a perceived need for a stronger security guarantor than Beijing.

“Cambodia sees America as a sort of guarantor of its own sovereignty facing the threat from Thailand,” explains Pou Sothirak, distinguished senior adviser at the Cambodian Center for Regional Studies. “This also fits into [Trump’s] containment policy of China.” This sentiment underscores a growing anxiety among smaller nations navigating the increasingly complex dynamics of US-China rivalry.

The Hun Manet Factor: A New Generation of Leadership

The transition of power from strongman Hun Sen to his son, Hun Manet, in 2023, is a pivotal element. Unlike his father, Hun Manet – a West Point graduate – is demonstrably more open to engagement with Western powers. This has already manifested in the lifting of the 2021 US arms embargo and the resumption of joint military exercises. This signals a willingness from Washington to re-engage, viewing Hun Manet as a potential partner in limiting China’s influence in Southeast Asia.

China’s Enduring Influence: A Difficult Balancing Act

Despite the overtures to the US, Cambodia’s economic ties to China remain overwhelmingly dominant. In the first 11 months of 2023, China accounted for over 53% of Cambodia’s total $9.5 billion in investment, dwarfing the US contribution of just 0.44%. Since 1998, Beijing has been the primary driver of infrastructure development, transforming the country’s landscape with roads, airports, and hospitals.

Moreover, Chinese investors control a significant portion of Cambodia’s key export industries, particularly garments, footwear, and travel goods. These companies operate as contract manufacturers for American brands, creating a complex web of economic interdependence. Anthony Galliano, group chief executive of Cambodian Investment Management, emphasizes this delicate balance: “They need both the largest export market, and the largest FDI investor…because one affects the other.”

The Ream Naval Base and US Concerns

Underlying these diplomatic maneuvers is the persistent US concern regarding a potential Chinese naval base at Ream, strategically located in the Gulf of Thailand. Both Cambodia and China deny that Beijing’s naval forces are utilizing the base, but Washington remains skeptical. This perceived military expansion is a key driver of the US’s renewed interest in strengthening ties with Phnom Penh.

Beyond Infrastructure: Tackling Online Scams

The US is also focusing on issues beyond geopolitics and infrastructure. Recent indictments against Prince Group and its chair, Chen Zhi, for running large-scale cyber scam operations targeting Americans, highlight another area of concern. This demonstrates a willingness to address illicit activities linked to Chinese investment within Cambodia.

Navigating a Polarized World: What’s Next for Cambodia?

Cambodia’s attempt to diversify its partnerships is a microcosm of a broader trend among smaller nations caught between the competing interests of the US and China. Ou Virak, president of Future Forum, cautions that true neutrality is increasingly untenable. “Neither the US or China will allow smaller countries to stay neutral. It’s a much more polarised world.”

The potential renaming of National Route 4, therefore, is more than a symbolic gesture. It’s a calculated risk, a signal of intent, and a reflection of the shifting geopolitical landscape in Southeast Asia. Whether Cambodia can successfully navigate this complex terrain – balancing its economic dependence on China with its growing security and economic interests with the US – remains to be seen.

FAQ: Cambodia, the US, and China

  • Why is Cambodia considering renaming a highway after Donald Trump? To signal a warming of relations with the US and potentially diversify its geopolitical partnerships.
  • How much does China invest in Cambodia? China accounted for over 53% of Cambodia’s total investment in the first 11 months of 2023.
  • Is there a Chinese naval base in Cambodia? The US suspects a Chinese naval base exists at Ream, but both Cambodia and China deny this.
  • What is the significance of Hun Manet’s leadership? Hun Manet is more open to engagement with Western powers than his father, creating opportunities for diplomatic realignment.

Did you know? The border dispute between Cambodia and Thailand, resolved with Trump’s intervention, led to a Nobel Peace Prize nomination for the former US president.

Explore our other articles on Southeast Asian geopolitics and US-China relations to gain a deeper understanding of these complex dynamics. Subscribe to our newsletter for the latest insights and analysis.

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