[War & Business] The Hidden Force Behind Cambodian Crime: The "Phnom Penh TECO" Canal

Suspicions of Criminal Funds Used in Canal Project
Canal Opening Expected to Undermine the "First Island Chain"

The construction site of the Phnom Penh TECO Canal in Cambodia, which began construction in August last year. Photo by AP Yonhap News

Despite the global shock caused by the recent crime wave in Cambodia, the Cambodian government itself has shown little reaction. Even after evidence emerged that Chinese criminal organizations were leading the Cambodian crime complex known as "Wenchi," the Cambodian government did not lodge any protest with China. Only recently did the Chinese and Cambodian governments announce that they would begin cracking down on Wenchi in cooperation with neighboring countries such as Laos, Myanmar, Thailand, and Vietnam. In the meantime, all members of the organization, including Chen Zhi, chairman of Prince Group and alleged leader of the criminal group, have fled and their whereabouts remain unknown.

Given the scale of the crimes, the damage to Cambodian citizens, and the blow to Cambodia's international image, one might expect the Cambodian government to protest strongly to China. However, the two countries have instead appeared to strengthen their cooperation. The Cambodian government has emphasized that its "ironclad friendship" with China remains unchanged, and that the "Phnom Penh TECO Canal" project-one of the core initiatives of the Belt and Road (land and maritime Silk Road) strategy-must succeed.

This canal project, which spans 180 kilometers, will connect the Mekong River running through the Cambodian capital Phnom Penh with the southern coastal region. China Road and Bridge Corporation (CRBC), a Chinese state-owned enterprise, has agreed to cover the entire construction cost of $1.7 billion (approximately 2.5 trillion won), and construction began in August last year. However, the governments of the United States and Vietnam strongly protested from the outset of construction.

The reason for their protest was the potential for Chinese military use. In 2023, the Chinese government built a naval base in the Ream region of southwestern Cambodia. If this canal is completed, it could strategically link mainland China to the naval base. There are concerns that, in the event of a conflict, Chinese forces could travel from southwestern China along the Mekong River to Phnom Penh, and then use the canal to reach the Ream naval base.

The governments of the United States and Vietnam believe that China is using the Belt and Road Initiative as a cover for military operations aimed at breaking the United States' "First Island Chain." The First Island Chain is a key element of the U.S. defense line in East Asia, connecting the islands of South Korea, Japan, Taiwan, the Philippines, Vietnam, and Indonesia, and serves as a containment line against China. The Ream naval base in Cambodia is located behind this First Island Chain, and the opening of the canal could render the First Island Chain ineffective.

As suspicions grew, the Cambodian government changed its stance at the end of last year, claiming that the canal project was a national initiative rather than part of the Belt and Road Initiative. China's support for the canal project also shifted to a more indirect form. Afterward, casinos backed by Chinese criminal organizations, including Prince Group, began to develop close ties with the Cambodian government.

The funds of Cambodian criminal groups are flowing into the private financial group Huione. One of the board members, Hun To, is the cousin of Cambodian Prime Minister Hun Manet. Other Cambodian political figures are also deeply connected to Huione. U.S. and Western intelligence agencies believe that a significant portion of the canal project funds originated from criminal groups and have demanded that Cambodia clarify the source of the funds, but the Cambodian government has not complied. The power struggle between the United States and China in Southeast Asia thus lies behind the Cambodian criminal organizations.

As the rivalry between the two great powers intensifies, countries located along their frontlines are increasingly likely to suffer from international crimes similar to those in Cambodia. Until there is meaningful progress in U.S.-China relations, it appears unlikely that the problem of Cambodian criminal organizations will be fully resolved.

This content was produced with the assistance of AI translation services.