Why It Matters

A recent Congressional Research Service report on Cambodia examines a significant shift in U.S.-Cambodia relations under the second Trump administration, which has sought closer diplomatic and security ties with Phnom Penh even as concerns persist over human rights, democratic governance and China’s growing influence.

The administration lifted a U.S. arms embargo and export restrictions on Cambodia in November 2025 that had been imposed in 2021 over concerns about human rights, corruption and Chinese military influence. At the same time, the administration’s foreign aid review reportedly terminated as many as 30 USAID projects in Cambodia, while fiscal 2026 appropriations omitted conditions on some U.S. assistance related to human rights and Chinese influence that had appeared in appropriations legislation since fiscal 2017.

Cambodia, a nation of 17 million people, sits at the intersection of U.S. and Chinese interests in Southeast Asia. Prime Minister Hun Manet, a West Point and New York University graduate, took power in 2023 after his father Hun Sen’s 38-year tenure. Although some observers hoped the younger, Western-educated leader would bring political change, the report found that Cambodia has maintained many of its repressive policies and has not instituted meaningful governance reforms.

The administration’s approach reflects an effort to expand U.S.-Cambodia relations while countering China’s influence in Southeast Asia. China is Cambodia’s largest foreign investor and largest source of imports and held 41% of the country’s foreign debt as of 2023. Since 2022, China has expanded facilities at Ream Naval Base, fueling U.S. concerns that Beijing could gain semi-permanent military access, although Cambodian and Chinese officials deny that China has exclusive rights to the base.

Chinese investment also extends across Cambodia’s infrastructure and development sectors. China and Cambodia broke ground in 2024 on the $1.1 billion Funan Techo Canal, while Chinese-backed projects have included industrial zones, an international airport and a deep-water seaport. Some PRC-linked investments in Sihanoukville have also been connected to cyberscam operations involving Chinese criminal organizations.

The administration has paired closer relations with new assistance. It announced $36 million for a five-year bilateral health partnership and some portion of $45 million in assistance supporting the Kuala Lumpur Peace Accords between Cambodia and Thailand. CRS also reported that approximately $5 million in additional funding for unexploded ordnance removal was provided through the accords.

That approach comes as Congress has relaxed some restrictions. Since fiscal 2017, State Department appropriations legislation had placed conditions on some U.S. assistance to Cambodia related to human rights, Chinese influence and other concerns. Those restrictions were not included in fiscal 2026 appropriations.

The Big Picture

Cambodia continues to face significant governance and human rights concerns. In 2017, the Cambodian Supreme Court dissolved the main opposition Cambodian National Rescue Party after accusing it of conspiring with the United States to overthrow the government, allegations the party and U.S. officials denied. The ruling Cambodian People’s Party subsequently won 125 of 125 National Assembly seats in 2018 and 120 of 125 seats in 2023.

Cambodian courts have also convicted dozens of former opposition members and other political activists. Opposition leader Sam Rainsy, who lives in self-imposed exile in France, has been sentenced in absentia to life in prison, while Cambodian-American lawyer and democracy activist Theary Seng is serving a six-year sentence for treason.

The House Appropriations Committee has called for a broader U.S. strategy toward Cambodia. H.Rept. 119-217 noted the need for a new U.S. integrated country strategy addressing issues including cybercrime, Cambodia’s strategic autonomy, the rule of law, democratic values, sovereignty and territorial integrity.

The Kuala Lumpur Peace Accords have become another element of U.S. engagement. President Donald Trump helped mediate a ceasefire after fighting between Cambodia and Thailand in July 2025, in part by pausing tariff negotiations while hostilities continued. Trump traveled to Malaysia in October 2025 for the signing of the U.S.- and Malaysia-mediated accords. Fighting resumed in December before another ceasefire produced what CRS described as an “uneasy yet sustained pause” in hostilities.

The Bottom Line

The second Trump administration is seeking to expand relations with Cambodia through security engagement, the removal of the arms embargo, new health assistance and support for the Cambodia-Thailand peace process. Those steps come despite persistent concerns about political repression, corruption and China’s economic and military influence.

Congress has also changed its approach. Fiscal 2026 appropriations did not include restrictions on some assistance related to human rights and Chinese influence that had appeared in appropriations legislation since fiscal 2017, even as House appropriators called for a new Cambodia strategy addressing democratic values, rule of law, sovereignty and strategic autonomy.

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