For China, a Cambodian canal project shows how Belt and Road Initiative can go only so far

With the power to reshape trade routes and affect geopolitical ties, the Funan Techo canal has become a litmus test for China’s project partnerships overseas

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Published: 6:00am, 24 Sep 2024Updated: 1:02pm, 2 Oct 2024

This is the first story in a two-part series about China’s increasing interest in canals, both at home and abroad, and what their construction will mean for economic growth and transport routes. You can read part two here.

Months earlier than originally scheduled, a polarising China-backed canal project broke ground in Cambodia on August 5 – the 72nd birthday of Hun Sen, former Cambodian prime minister and the longest-serving head of government in the country’s history.

“We must build this canal at all costs,” current Prime Minister Hun Manet proclaimed at the launch event.

It did not take long for the Funan Techo canal to go from the drawing board to construction after being announced in early 2023. In October, during his visit to China to attend the annual Belt and Road Forum, Hun Manet – the son of Hun Sen – witnessed the signing ceremony for a framework agreement with the state-owned China Bridge and Road Corporation (CRBC).

Cambodia sees China as a natural partner with whom it can build the highly anticipated canal. The world’s second-largest economy has backed many of Cambodia’s infrastructure projects in recent years, but the canal is the first of its kind.

For China, which has its own agenda to boost connectivity with Southeast Asian countries through investing in regional transport links – including a domestic canal under construction in China’s southern Guangxi Zhuang autonomous region as well as several cross-border railways – the 180km (110-mile) waterway in Cambodia undoubtedly presents an attractive opportunity.