A US naval warship’s visit to Cambodia’s Sihanoukville signals a potential pivot towards the US, as the country insists on continuing Chinese support amid concerns over stalled projects and a reported cut in Beijing’s loans to Phnom Penh.
A visit by a US naval warship to Cambodia’s Sihanoukville on the Gulf of Thailand on Monday may be significant. The visit occurred on the same day as Phnom Penh’s Ministry of Finance castigated a a December 11 report by Reuters claiming China had cut off funding and new loans to the developing Southeast Asian country.
On Monday, a US warship and naval delegation arrived in the Cambodian city of Sihanoukville. The city, located on the Gulf of Thailand, is just 30 km from the controversial Ream Naval Base, which US intelligence has repeatedly claimed is now controlled by China.
Notably, the visit comes just weeks after Cambodia invited the United States to visit the Ream Naval Base. That offer came amid Cambodia’s continuing denials that a Chinese-funded project at the base signals that China had established a permanent presence there.
China’s alleged influence over Ream Naval Base raises questions but the visit may signal a shift in US ties
Certainly, this has been all but an accepted fact in recent months. Undeniably, China, for the last twelve months or so, has maintained two corvette vessels at the facility.
Reconnaissance photos show them docked at a pier that was built with Chinese help to accommodate an aircraft carrier if required.
Certainly, Cambodia’s navy does not possess or aspire to build or operate an aircraft carrier. The Ream Naval Base was formerly a facility built with the help of the US Navy. However, all that changed after 2017, particularly after 2020, when Chinese contractors pulled down American structures and built a completely new naval base.
Nonetheless, the visit by the USS Savannah on Monday, accompanied by 100 sailors and led by US Indo-Pacific Naval Commander Samuel Paparo, does signal change. It comes at a time of reported rifts between China and its closest Southeast Asian partner.
Cambodia dismisses reports of China halting loans amid stalled $1.7 billion canal project launched in August
Indeed, the visit on Monday was accompanied by a new controversy over Cambodia’s ties with China.
A spokesman for Cambodia’s Ministry of Finance dismissed a Reuters report on December 11. At length, the report suggested that China has cut off financial support for Cambodia. In particular, the Reuters piece stated that no new loans had been advanced to Cambodia in 2024.
At the same time, the Reuters report echoed widespread claims in recent weeks that an ambitious canal project had been forced to halt progress.
In short, despite a high-profile launch, the Funan Techo Canal was not proceeding. The $1.7 billion plan aimed to connect Phnom Penh, the capital, and its port with the Gulf of Thailand.
The project was announced by Cambodian Prime Minister Hun Manet in August, on his father’s birthday. In addition, it aimed to connect with the Mekong River.
Certainly, the project was viewed warily by the United States and Vietnam.
However, it is understood that it was not agreed upon before the announcement with Chinese planners.
Presently, Beijing is understood to be scaling back its ambitious Belt and Road initiative. At length, it is also facing up to its challenged commitments in Myanmar due to the civil war there.
Cambodia faces challenges in infrastructure projects as China reins in loans amid strained relations
The Reuters December 11 report noted that China’s loans to Cambodia totalled $11.6 billion. Furthermore, it cited no further advances as Beijing was said to be reining in its support for the developing country.
On Monday, Meas Soksensan of the Finance Ministry in Phnom Penh said the report was “misleading and ridiculous.”
The Cambodian official pointed to visits by the country’s strongman and de facto ruler recently to China. Hun Sen, the father of Hun Manet, is still the President of the Cambodian Senate.
In addition, Cambodian Foreign Minister Prak Sokhonn met Chinese Foreign Minister Wang Yi on November 28. Significantly, a press release after that meeting reaffirmed the deep friendship between the two countries. Nonetheless, it highlighted a changing landscape.
Previously, the Reuters report cited concerns in Beijing over “failed infrastructure projects” in the past.
The report noted Finance Ministry figures in Phnom Penh showing no new loans from January 2024 to September 2024. At the same time, it highlighted China as the country’s biggest creditor.
Cambodian officials reject claims of halted Chinese loans as US naval visit signals renewed engagement
On Monday, Mr. Soksensan rebuffed the claims.
“Regarding the circulated information that China has stopped providing loans or similar claims, I find it laughable. These projects are still under feasibility studies, with assessments being conducted on both their economic and social impacts,” he said. “Concrete agreements will be signed soon. Yet, there are claims that we haven’t received any loans. I think this is a clear case of misleading the public, which may cause unnecessary confusion.”
Meanwhile, the warm welcome given to US naval personnel on Monday is noted. Certainly, the USS Savannah is not docking at the Ream Naval Base.
US naval visit aims to foster bilateral cooperation despite years of fractious Cambodia-US relations
Nevertheless, the visit was one aimed at fostering bilateral cooperation. That was according to Cambodia’s Defense Ministry spokesman, Lieutenant General Malee Sojata.
Indeed, it was the first such visit in eight years. The visit is noteworthy and comes despite fractious relations between Cambodia and the United States in the intervening period.
The US naval delegation will meet local leaders in Sihanoukville and defence officials. In addition, there will be discussions on deepening military cooperation. The visit will include diplomatic aspects as well as cultural exchanges.
China’s Navy sails into Ream Naval Base in Cambodia with Thailand’s neighbour now seen as a proxy for Beijing
Meanwhile, both US and Cambodian naval personnel will engage in a number of sporting events.
In short, it appears that the visit is a deliberate effort to thaw the ice that has developed between both countries in recent years. Undoubtedly, it represents an attempt by Cambodia to pivot back towards the United States.
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