Pinglu Canal Opens New Trade Route as Cambodia-China Commerce Surges 22%

Trade between Cambodia and China jumped more than 22% 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.

From January through August, bilateral commerce totaled $15.54 billion, marking a 22.37% increase compared to the previous year, according to Ministry of Commerce spokesman Pen Sovichea.

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

New Maritime Gateway

The 134.2-kilometer Pinglu Canal, which officially opened September 16 in China's Guangxi Zhuang Autonomous Region, establishes a direct waterway linking western China's interior with the Beibu Gulf and Southeast Asian markets.

The infrastructure project connects the Xijiang and Qinjiang river systems to the Beibu Gulf, enabling vessels carrying up to 5,000 tonnes to navigate from inland areas to the sea via Qinzhou. The canal integrates with rail, highway, and ocean shipping networks as part of the New International Land-Sea Trade Corridor.

Chinese Vice Premier Ding Xuexiang, speaking at the 23rd China-ASEAN Expo in Nanning on September 17, emphasized that the canal cuts 560 kilometers from transport routes connecting southwestern China with ASEAN nations, substantially lowering logistics expenses.

For Cambodian businesses, the canal provides access through Qinzhou Port to western China's markets. Goods can sail to Qinzhou before moving inland through the waterway, while Chinese products can travel the reverse path toward Sihanoukville and other regional ports.

Li Chaofei, general manager of Shanghai New Haifeng Container Transportation's Nanning branch, noted that shipping from Beibu Gulf Port to Sihanoukville requires just five days—over 50% quicker than conventional routes through Guangdong. His company operates six container services from Beibu Gulf Port covering Cambodia, Vietnam, Thailand, Malaysia, Indonesia, the Philippines, and Brunei.

Agricultural Exports Lead Growth

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

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

Bags and travel goods also performed well, rising 29.72% to $47.42 million.

However, several manufacturing categories declined. Garment exports fell 11.48% to $121.30 million, footwear and components dropped 25.72% to $38.55 million, and electronics exports decreased 22.92% to $40.05 million. Vehicle parts exports plunged 75.28% to $3.32 million.

The data suggests Cambodia's most promising near-term opportunities lie in expanding agricultural shipments while building processing capabilities to advance beyond raw materials.

Import Dependency Continues

China supplied 51.53% of Cambodia's imports during the reporting period. Fabric imports reached $3.19 billion, climbing 10.58%—a reflection of their critical role in Cambodia's garment, footwear, and bag industries.

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

China represented 29.81% of Cambodia's total international trade during this timeframe. While purchasing 5.33% of Cambodian exports, it provided over half of all imports—resulting in roughly $11 of Chinese goods imported for every $1 exported to China.

The trade gap remains challenging, though the marginally faster growth in Cambodian exports signals potential for gradual diversification if businesses can leverage improved transport infrastructure and market access.

More balanced cargo volumes would benefit both sides. Vessels delivering Chinese products to Cambodia need adequate return freight to avoid empty or partially filled containers on the return voyage. Consistent outbound cargo could reduce shipping costs and improve route viability for Cambodian exporters.

Products positioned to benefit from the new corridor include rice, cassava, rubber, cashews, bananas, mangoes, seafood, and processed foods. Manufacturing goods like garments, bags, and electronic components could also utilize the route if costs prove competitive.