Cambodia and China pushed their economic partnership to a new high in 2025 as two way trade climbed past nineteen billion dollars, reflecting the strong commercial ties between Phnom Penh and Beijing. According to the General Department of Customs and Excise, total trade turnover from January to December reached $19.73 billion, up sharply from $15.18 billion in 2024, showing a 29 percent year on year increase that mirrors the busy activity seen at Cambodia seaports and border checkpoints as Chinese goods and investment continue to flow into the country.
Growing Trade Brings a Widening Imbalance
While the growth looks impressive, the numbers also reveal a deeper challenge. Cambodian exports to China slipped by 3.6 percent to $1.68 billion, while imports from China jumped 34.3 percent to $18.04 billion, widening the trade gap with Cambodia’s largest trading partner. China remains the dominant supplier of machinery, electronics, construction materials and raw inputs that fuel Cambodia’s factories and infrastructure projects, which means rising trade volumes also come with heavier dependence on imported goods.
Why Chinese Imports Are Rising So Fast
Lor Vichet, Vice President of the Cambodia Chinese Commerce Association, explained that this surge in imports was partly driven by changes in US trade policy. Speaking to Khmer Times, he said Cambodian manufacturers in the garment, footwear and travel goods sector rushed to bring in raw materials from China earlier in the year after US President Donald Trump announced reciprocal tariffs on Cambodian goods. “The US later reduced tariffs on Cambodian goods to 19 percent in August, which allowed Cambodia to continue exporting more products to the American market,” Vichet said. “Because tariffs remain relatively low, many US buyers place orders, particularly during peak seasons such as Christmas and Thanksgiving, when consumer spending and travel increase.” This rush to secure materials and ship products ahead of changing tariffs pushed imports from China even higher.
Structural Reasons Behind the Trade Deficit
Vichet also pointed out that the imbalance is not just about short term market shifts but reflects deeper structural factors. “Cambodia runs a trade deficit because China invests heavily here and establishes a large number of factories and development projects, all of which require substantial imports of raw materials for production and export,” he explained. To create a healthier balance, he said Cambodia needs to focus on building its own raw material production and actively promoting high potential Cambodian products in China. “First, Cambodia needs to develop its own raw material production facilities to reduce dependence on imports. Second, we must identify high potential Cambodian products and actively promote them in the Chinese market,” he said, adding that a clear strategic plan and better understanding of China’s market are essential for long term success.
Cambodia Trade Performance Remains Strong Globally
Beyond China, Cambodia’s overall trade picture in 2025 was equally encouraging. The Ministry of Commerce reported that total trade with global markets reached more than $65.24 billion, a 17.66 percent increase from the previous year. Exports rose to $31.28 billion while imports grew to $33.96 billion, showing that Cambodia continues to hold its ground despite geopolitical tensions and shifting demand in major economies. Speaking at the ministry’s Trade Work Summary Conference, Penn Sovicheat said, “The growth shows that Cambodia continues to maintain its main markets at the global level, while also enhancing its potential within the supply chain and value chain,” highlighting the confidence international buyers continue to place in Cambodian products.
Diverse Markets and Expanding Export Sectors
Cambodia’s export reach now spans ASEAN neighbors and major economies including China, Japan, Korea, Australia, New Zealand, the European Union, the UK, the US, Canada, the UAE and India. Garments, textiles and footwear remain the backbone of exports, supported by travel goods and bags, while agricultural products like rice, cassava and cashew nuts continue to play an important role. At the same time, industrial products such as car tyres, electronic components and automotive parts are gaining momentum, helping Cambodia move up the value chain as it looks to strengthen its competitiveness in the years ahead.
Conclusion
Cambodia’s trade with China and the wider world in 2025 shows a country that is deeply connected to global supply chains and benefiting from strong demand, even as it faces the challenge of balancing its import heavy relationship with its biggest partner. With smarter export strategies, investment in domestic production and a clearer long term plan, Cambodia has the opportunity to turn rapid trade growth into more sustainable and balanced economic progress.
Source: Khmer Times