"China and Cambodia agree on financing for a 94-mile canal linking the Mekong to the Gulf of Thailand", 19 April 2025

Cambodia and China have signed a $1.2 billion deal to finance an ambitious canal project that aims to boost trade efficiency by linking a branch of the Mekong River near Phnom Penh to a port on the Gulf of Thailand, the Cambodian government agency heading the project announced ...

The deal to fund the Funan Techo Canal was signed … during the state visit to Cambodia of Chinese President Xi Jinping, the agency said in a news release…

Construction of the 151.6-kilometer (94-mile) canal began … but was halted shortly after the Aug. 5 groundbreaking ceremony for reasons that were not made clear. Cambodian Prime Minister Hun Manet said at the time that the canal will be built “no matter what the cost,” emphasizing that the project promotes “national prestige, the territorial integrity and the development of Cambodia.”

… China Communications Construction Company is the parent company of China Road and Bridge Corporation, the contractor for the project’s construction from the Bassac River to the coastal province of Kep. The massive state-owned firm has faced scrutiny for its alleged involvement in financial scandals. It is also blacklisted by the United States for its role in helping the Chinese military construct and militarize artificial islands in the South China Sea…

Critics have raised concerns that the canal could severely disrupt the Mekong River’s natural flood patterns. These disruptions could lead to worsening droughts and a reduction in the nutrient-rich silt essential for Vietnam’s vital rice production in the Mekong Delta, a region that sustains millions of people and is a major global rice exporter.

The signing announcement, however, stated that “A rigorous Environmental Impact Assessment, conducted by 48 specialists, confirmed minimal environmental impact.”…