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Why are Chinese investors betting big on Cambodia?

13 Nov '25
4 min read
 Why are Chinese investors betting big on Cambodia?
Pic: Shutterstock

Insights

  • The Agreement on Reciprocal Trade grants Cambodian garments, footwear, and travel goods unprecedented access to the US market, making Cambodia the only ASEAN nation to enjoy full tariff-free status.
  • The deal positions Cambodia as Washington's most favoured regional partner.
  • With the tariff advantage offering a gateway to the US, Chinese manufacturers are reportedly investing increasingly in Cambodia.

The Agreement on Reciprocal Trade, inked on October ** during the ASEAN Summit in Kuala Lumpur and witnessed by US President Donald Trump and Malaysian Prime Minister Anwar Ibrahim, has vaulted Cambodia into the spotlight.

Under this breakthrough deal, tariffs on *** per cent of US industrial and agricultural exports to Cambodia have been scrapped. In exchange, Cambodia gained expanded access to its crown jewels—garments, footwear, and travel goods—for the world’s largest consumer market.

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