On July 31, 2026, Xie Wudi, Secretary General of the Investment Committee of the Development Council of Cambodia, met with Zhou Wendong, Deputy Mayor of Wuxi City, Jiangsu Province, China, and his delegation in Phnom Penh. The conversation between the two sides outlined a clear path for the Sihanouk Port Special Economic Zone to leap from an industrial land to an important node in the regional supply chain. When it was explicitly proposed during the talks to promote Chinese enterprises to invest in the production of raw materials and intermediate products in Cambodia, a clear signal was already released - China Cambodia industrial cooperation is bidding farewell to the era of simple processing and assembly, and moving towards a new stage of industrial chain coordination and manufacturing upgrading.

The status of the special zone is stable, and the formation of industrial clusters is accelerating

In recent years, the Xigang Special Economic Zone has become one of the most representative industrial parks in Cambodia, attracting a large number of manufacturing enterprises to settle in. Both sides have once again expressed their support for the development of the Xigang Special Economic Zone, indicating that the park will continue to be an important carrier for China's manufacturing industry and international industrial transfer in the future. With more upstream and downstream enterprises entering the industrial chain, the park is expected to further upgrade from a manufacturing base to an industrial cluster. The consolidation of the status of the special zone not only means the continuous improvement of infrastructure and supporting services, but also indicates that China Cambodia production capacity cooperation will shift from quantitative expansion to qualitative improvement.

Localization of raw materials and improvement of supply chain resilience

In this meeting, it was specifically proposed to promote Chinese enterprises to invest in the production of raw materials and semi-finished products in Cambodia, which is of great significance. In the past, many companies completed final assembly in Cambodia before exporting to the European and American markets. Now, if raw materials and intermediate products are gradually localized for production, it will mean an increase in local industrial supporting capabilities, a decrease in procurement and logistics costs for enterprises, a reduction in dependence on imported components, and further improvement in supply chain resilience. This is also an important symbol of the localization and upgrading of the manufacturing industry from processing and assembly to the industrial chain, which will create favorable conditions for Cambodia to deeply integrate into the global supply chain. Keywords: Southeast Asian news and information, industrial chain, industry, technology

Dual Corridor Integration, Deepening China Cambodia Cooperation

In recent years, both China and Cambodia have continued to promote the construction of industrial development corridors and fish rice corridors. The industrial and technological corridor focuses more on manufacturing upgrading, technological innovation, high value-added industries, digital economy, and industrial park construction, while the fish and rice corridor focuses on agricultural modernization, agricultural product processing, grain trade, and agricultural product exports. The two cooperation frameworks complement each other, reflecting the extension of China Cambodia cooperation from a single investment to multiple fields such as industrial synergy, technological innovation, and agricultural upgrading. Wuxi City, Jiangsu Province has a strong industrial foundation in high-end equipment manufacturing, Internet of Things, integrated circuits, new energy, intelligent manufacturing and other fields. In the future, more Wuxi enterprises entering Cambodia will not only bring funds, but also advanced manufacturing capabilities, technology and industrial management experience, providing new impetus for the upgrading of Cambodia's manufacturing industry. With more Chinese companies deploying raw materials, intermediate products, and high value-added manufacturing links to Cambodia, the Xigang Special Economic Zone is expected to gradually develop from a traditional manufacturing base into an important node in the regional supply chain, providing new growth space for Cambodia's manufacturing industry upgrading, export competitiveness enhancement, and attracting high-quality foreign investment.Editor/Gao Xue