New Chinese Waterway Opens Fresh Trade Routes as Cambodia-China Commerce Surges 22%

Trade between Cambodia and China expanded by more than one-fifth in the first eight months of 2026, with the recent launch of China's Pinglu Canal promising to accelerate the flow of agricultural products and manufactured goods between the nations.

The two countries exchanged $15.54 billion worth of goods from January through August, marking a 22.37% increase compared to the previous year's equivalent period, according to Ministry of Commerce spokesman Pen Sovichea.

Cambodia's shipments to China climbed 23.43% to reach $1.31 billion, while purchases from China grew 22.27% to $14.23 billion. Despite growth in both directions, Cambodia maintained a significant trade imbalance of roughly $12.92 billion.

A New Waterway Creates Opportunities

The 134.2-kilometer Pinglu Canal officially began operations on September 16 in China's Guangxi Zhuang Autonomous Region, potentially offering Cambodian businesses improved access to interior Chinese markets and faster transit times.

The waterway connects the Xijiang and Qinjiang river networks to the Beibu Gulf, enabling vessels carrying up to 5,000 tonnes to navigate from inland areas to coastal ports at Qinzhou. This infrastructure integrates with rail, road, and maritime systems as part of the New International Land-Sea Trade Corridor.

At the 23rd China-ASEAN Expo in Nanning on September 17, Chinese vice-premier Ding Xuexiang highlighted how the canal cuts 560 kilometers from shipping routes linking southwestern China with Southeast Asian nations, substantially lowering transportation expenses.

For Cambodian traders, the canal provides a pathway through Qinzhou Port. Maritime cargo can sail to Qinzhou before moving inland via the waterway, while goods from western China can travel the reverse route toward Sihanoukville and other regional ports.

Li Chaofei, who manages the Nanning division of Shanghai New Haifeng Container Transportation, noted that voyages from Beibu Gulf Port to Sihanoukville require just five days—more than 50% quicker than traditional routes through Guangdong. His company runs six container lines from Beibu Gulf Port serving seven Southeast Asian nations.

Agricultural Exports Show Strong Momentum

Several Cambodian agricultural sectors recorded substantial gains during the reporting period. Milled rice shipments rose 45.33% to $88.48 million, while cassava exports more than doubled to reach $77.59 million.

Rubber exports surged 308.98% to $40.94 million, and fishery products increased 278.41%, though the latter remained modest at approximately $454,000 in total value. Other agricultural goods reached $157.33 million, up 16.24%.

Bag and luggage exports also performed well, climbing 29.72% to $47.42 million.

However, certain manufacturing sectors faced headwinds. Garment exports to China dropped 11.48% to $121.30 million, while footwear and components fell 25.72% to $38.55 million. Electronics shipments declined 22.92% to $40.05 million, and vehicle parts tumbled 75.28% to $3.32 million.

These patterns suggest Cambodia's immediate growth potential may center on agricultural products while developing greater processing capabilities to add value beyond raw materials.

Import Composition and Trade Balance

China supplied 51.53% of Cambodia's imports during the eight-month stretch, cementing its position as the kingdom's primary source of foreign goods.

Fabric imports totaled $3.19 billion, increasing 10.58%—these materials serve as essential inputs for Cambodia's garment, footwear, and bag industries. Construction materials rose 5.06% to $1.29 billion, while electronics imports jumped 78.54% to $532.89 million.

Cambodia brought in $493.13 million worth of passenger vehicles from China, a 56.16% increase, along with $53.33 million in trucks, up 145.54%.

Though these imports widen the trade gap, many represent machinery, materials, and intermediate goods that support Cambodian manufacturing, infrastructure development, and consumer needs.

China represented 29.81% of Cambodia's total international commerce during this period. It purchased 5.33% of Cambodian exports while providing more than half of imports—essentially, Cambodia imported approximately $11 of Chinese products for every $1 exported to China.

While the imbalance persists, the marginally faster growth rate of Cambodian exports suggests gradual progress toward more balanced trade, particularly if businesses leverage improved transportation infrastructure and market access.

More symmetrical cargo flows would benefit both sides. Vessels delivering Chinese goods to Cambodia need adequate return shipments to avoid sailing back empty or partially loaded, which drives up costs. Consistent outbound volumes could make routes more economically viable and reduce freight expenses for Cambodian exporters.

Products positioned to benefit from the new corridor include rice, cassava, rubber, cashews, bananas, mangoes, seafood, and processed foods. Manufactured items like garments, bags, and electronic components may also utilize these routes if shipping proves cost-competitive.