China tries to downplay ‘nonsense’ claims it pulled out of Cambodian canal project

The Chinese embassy in Cambodia sought to downplay reports it had pulled out of a controversial canal project by publishing an article that described them as “complete nonsense”. Media reports said Beijing had withdrawn from the US$1.7 billion Funan Techo canal, which will link the capital Phnom Penh with the Gulf of Thailand, after a disagreement about control of the project. The project has also caused concern in neighbouring Vietnam and in the United States, while conservationists have warned it threatens “fragile” ecosystems and agriculture. On Tuesday, the Chinese embassy posted an article on social media which said domestic and international media had reported that “China will no longer provide support to Cambodia, and the canal project will fail, affecting the ironclad friendship between China and Cambodia.” It added: “This is complete nonsense.” The groundbreaking ceremony for the 180km (112-mile) waterway was held in August, but months later there was no sign of work beginning on the project, according to domestic and international media reports. The article by Zhou Xin, who regularly comments on international affairs for state media, said Beijing had made it clear it was willing to help Cambodia with the project but given its “scale and complexity”, in-depth research and frequent discussions would be needed before construction started. It compared it with the 135km Pinglu canal in the southern Chinese region of Guangxi, where research and preparation took three years before construction work started in August 2022. “The Funan Techo canal project also needs similar careful research and discussions,” the article said, adding that a Chinese team had visited Cambodia last month to discuss the project. It predicted that more information about the progress of the scheme would be released, adding “we shall wait and see”. At the groundbreaking ceremony, Cambodia’s Prime Minister Hun Manet told a flag-waving crowd of hundreds that China would contribute 49 per cent of the funding for the project, which will link the Mekong River to the sea and reduce Cambodia’s reliance on its neighbour Vietnam for shipping. But questions persist over China’s involvement. In November Reuters reported that Beijing had expressed misgivings about the project, citing four anonymous sources directly involved in the investment plans or briefed about them. The report said it had not made definitive funding commitments because the project’s shareholding structure had not been finalised. Besides the challenge of financing and building the canal, the project has prompted warnings by environmentalists that it risked reducing water flow to the Mekong, damaging vulnerable ecosystems and causing salination that threatens local food supplies. There are wider political implications too, with the US expressing concern at China’s growing influence in the region. Meanwhile, Vietnam is worried the canal could be used by Chinese warships and hit its ports’ revenues. The article shared by the embassy debunked claims circulating on social media that Cambodia had turned against China under the “increasing inducement of the United States”, saying many videos and pictures cited as evidence were obviously forged using AI technology to discredit Cambodian leaders. “This is even more outrageous,” it said, adding that Hun Manet had pledged to continue the foreign policy approach of his father Hun Sen, who led the country for decades. “He reiterated many times that Cambodia and China are ironclad friends and will be committed to promoting friendly relations between Cambodia and China … It is true that Hun Manet had studied in the US, but we believe he knows who will be Cambodia’s most reliable and trustworthy friend at critical moments,” the piece said. It also said it was “completely untrue” that the project would have any impact on relations between China and Cambodia. It said the two sides had a long history of friendly ties and in 2019, Cambodia became the first country in the world to sign an action plan for building a community with a shared future with China. The article added that trade between the two countries grew by almost 24 per cent year on year to US$15 billion in 2024, while the China-backed Sihanoukville Special Economic Zone accounted for nearly 8 per cent of Cambodia’s trade and more than half of the local economy.

China tries to downplay ‘nonsense’ claims it pulled out of Cambodian canal project

Embassy in Phnom Penh publishes article dismissing recent reports that cast doubt on Beijing’s commitment to the Funan Techo project