Trade between Cambodia and China surged by more than 22 percent in the first eight months of 2026, reaching $15.54 billion as both nations look to capitalize on newly improved transportation infrastructure connecting their markets.

The recently inaugurated Pinglu Canal, which opened in mid-September in China's Guangxi region, is expected to accelerate commercial exchanges by cutting shipping distances and reducing logistics expenses for Cambodian agricultural producers and manufacturers.

According to Commerce Ministry spokesman Pen Sovichea, Cambodian shipments to China climbed 23.43 percent to $1.31 billion during the January-August period, while incoming goods from China rose 22.27 percent to $14.23 billion.

Despite the robust growth on both sides, Cambodia continues to face a significant trade gap with China, recording a deficit of nearly $12.92 billion during the reporting period.

Infrastructure Upgrade Creates New Trade Corridor

The 134.2-kilometer waterway connects the Xijiang and Qinjiang river systems with the Beibu Gulf, enabling vessels carrying up to 5,000 tonnes to travel between China's interior provinces and coastal ports. The canal integrates with road, rail, and maritime networks under the New International Land-Sea Trade Corridor framework.

Chinese Vice Premier Ding Xuexiang, speaking at the China-ASEAN Expo in Nanning, emphasized that the new canal shortens the transport distance between southwestern China and Southeast Asian nations by 560 kilometers, substantially lowering shipping costs.

For Cambodia, the infrastructure development matters primarily because of its connection to Qinzhou Port and the broader Beibu Gulf shipping network. Cambodian products can now reach Qinzhou by sea before continuing inland via the canal, while Chinese goods from western provinces can move in reverse toward Sihanoukville and other regional ports.

Li Chaofei, who manages operations for Shanghai New Haifeng Container Transportation at its Nanning office, noted that the sea route between Beibu Gulf Port and Sihanoukville takes just five days—more than 50 percent faster than traditional shipping lanes through Guangdong province.

Agricultural Sector Shows Strong Performance

Several Cambodian agricultural products posted impressive gains in the Chinese market during the eight-month period. Milled rice exports jumped 45.33 percent to $88.48 million, while cassava shipments more than doubled to reach $77.59 million.

Rubber exports saw a dramatic increase of 308.98 percent, totaling $40.94 million, and fishery products rose 278.41 percent, though from a smaller base of roughly $454,000. Other agricultural goods climbed 16.24 percent to $157.33 million.

The bags and travel goods category also performed well, advancing 29.72 percent to $47.42 million.

However, traditional manufacturing exports struggled. Garment shipments to China fell 11.48 percent to $121.30 million, footwear and components dropped 25.72 percent to $38.55 million, and electronics declined 22.92 percent to $40.05 million. Vehicle parts exports plummeted 75.28 percent to just $3.32 million.

These mixed results suggest that Cambodia's immediate opportunities lie in expanding agricultural exports while building processing capabilities to add value beyond raw commodities.

China Dominates Import Market

China remained Cambodia's largest supplier, accounting for 51.53 percent of all imports during the period. Textile and fabric imports totaled $3.19 billion, up 10.58 percent, serving as essential inputs for Cambodia's garment, footwear, and travel goods industries.

Construction materials rose 5.06 percent to $1.29 billion, while electronics imports surged 78.54 percent to $532.89 million. Passenger vehicle imports increased 56.16 percent to $493.13 million, and truck imports jumped 145.54 percent to $53.33 million.

Overall, China represented 29.81 percent of Cambodia's total international trade. While it purchased just 5.33 percent of Cambodian exports, it supplied more than half of Cambodia's imports—creating a ratio where Cambodia imports approximately $11 of Chinese goods for every dollar it exports to China.

Path Toward More Balanced Trade

Though the trade imbalance remains substantial, the slightly faster growth rate in Cambodian exports offers encouragement that commercial relationships could become more balanced over time, particularly if businesses successfully leverage improved transportation links and market access agreements.

Developing more balanced cargo flows will be critical. Ships delivering Chinese products to Cambodia need adequate return cargo to prevent containers from traveling back empty or partially loaded. Consistent outbound volumes could help reduce freight costs and make the shipping route more economically viable for Cambodian exporters.

Products positioned to benefit from the new corridor include rice, cassava, rubber, cashew nuts, tropical fruits like bananas and mangoes, seafood, and processed food items. Manufactured goods such as garments, bags, and electronic components may also utilize the route if shipping costs prove competitive.