Cambodia 20240610: Intrepid, Burgeoning, Ardent

Mekong Memo Cambodia Weekly: Business, politics, finance, trade & legal news.

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Headlines:

U.S. Struggles to Counter Chinese Influence

Defense Sec Visit Overshadowed by China Ties

Canal-Related Economic and Geopolitical Debates

Infrastructure Development Accelerates

Harnessing Wind Power with New Farms

Economic Growth and Innovation in Focus

Trade and Investment with ASEAN and China

Mobile Banking Dominates Digital Payments

International Relations: KR, CA, BY

New Tax Policies Unveiled at Forum

Low Taxes Fuel Growth and Competitive Edge

Strengthening US Relations: A Path to Mutual Trust

Politics of Gratitude Strain Vietnam Relations

Finding the Fun in Genocide

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U.S. Struggles to Counter Chinese Influence

Washington's efforts to reduce Chinese influence in Cambodia are falling short, thanks to some misguided assumptions. Defense Secretary Lloyd Austin's recent visit and the perceived opportunity following Prime Minister Hun Manet's succession have yet to yield the hoped-for outcomes. Symbolic setbacks, like the inauguration of Xi Jinping Boulevard and U.S. Ambassador W. Patrick Murphy's controversial departure, are indicative of the challenges. Media praise for Murphy's cooperation with the ruling Cambodian People's Party is symptomatic of the U.S. failure to address significant governance and security issues in Cambodia.

Read more: The Diplomat

Defense Sec Visit Overshadowed by China Ties

U.S. Defense Secretary Lloyd Austin's recent visit was expected to fortify military cooperation and address Cambodia’s growing ties with China. During discussions, Austin emphasized the maintenance of regional stability and the importance of bilateral relations. His trip coincided with Prime Minister Hun Sen and his successor Hun Manet's meetings with Chinese officials, contrasting the differences between U.S. and Chinese influence. The visit also touched on ongoing concerns about strategic partnerships and implications for regional security.

Read more: Washington Times (Bilateral Talks), Defense.gov (Regional Stability), Reuters (Chinese Ties), PACOM (Strategic Partnerships), Khmer Times (Photos), Phnom Penh Post (Chinese Ties)

Canal-Related Economic and Geopolitical Debates

The Funan Techo Canal project, set to break ground on August 5, is planned to connect Phnom Penh directly to the sea, bypassing Vietnam. Expected to cost $1.7 billion, the canal has raised environmental and geopolitical concerns, particularly from Vietnam, due to the potential to facilitate a Chinese military presence near its border. Prime Minister Hun Manet continues to emphasize the project's economic benefits to Cambodia, urging public support despite opposition.

Read more: Mizzima (Geopolitical Concerns), FULCRUM (Mutual Understanding), Khmer Times (Public Support), Khmer Times (Project Details)

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Infrastructure Development Accelerates

The Kampot Multi-Purpose Port has completed its first phase. High-speed trains from Japan were tested in Sihanoukville. The Techo International Airport, now 76% complete, is set to replace Phnom Penh International Airport by 2025. Discussions with Canada centered on furthering transport infrastructure and public transport services in a move towards further modernizing infrastructure.

Read more: Cambodianess (Kampot Port), Khmer Times (High-Speed Rail), Khmer Times (Techo Airport), Khmer Times (Canada Discussions), Fibre2Fashion (Kampot Port Phase 1)