AKP Phnom Penh, February 05, 2026 --

For a long time, Cambodia’s national image has been closely tied to labels such as online scams, gray industries, and transnational crime. Although a significant portion of these illegal activities is perpetrated by foreign criminals, the stigmatising perception of Cambodia as a “scam country” remains widespread in the international community. At the same time, there is a common perception that the Cambodian government’s enforcement efforts have not met public expectations, allowing negative impressions to solidify over time.

The damage caused by this perception has been systemic. It has steadily eroded national credibility, placing Cambodia in a passive position in international engagement. It has also created a structural obstacle to development—investor concerns over security have discouraged capital inflows, weakening economic momentum. The tourism sector has suffered from a crisis of confidence, with declining visitor numbers directly affecting livelihoods. Ultimately, the costs have been borne by ordinary citizens, who endure both social stigmatisation and the loss of economic opportunities.

However, close observers have noted that a profound and thorough governance overhaul is sweeping across this Southeast Asian nation. On January 31, the National Police General Directorate of Cambodia launched a large-scale operation targeting online scam networks, arresting 2,044 foreign suspects at the scene. This is widely regarded as one of the largest anti-fraud law enforcement actions in recent years. It is not an isolated incident but a concentrated demonstration of national resolve.

Samdech Techo Hun Sen, President of the Senate of Cambodia President of the Cambodian People’s Party (CPP) has firmly stated, “Cambodia is not a heaven for criminals, but their hell.” Samdech Thipadei Hun Manet, Prime Minister of Cambodia has identified cracking down on online scams as the country’s top national priority, calling for nationwide unity to enhance its international reputation.

From the central government to local authorities, a systemic governance campaign is in full swing: Sihanoukville Province emphasises expedited trials for online scams cases; Kampong Speu Province vows to severely punish officials who shield criminals, Siem Reap Province mobilises the public to report illicit activities, and Phnom Penh pledges to maintain social stability to attract foreign investment. These actions not only demonstrate the mobilisation capacity of Cambodia’s national governance system but also send a crucial signal to the international community—particularly to Chinese investors: Cambodia is proactively severing ties with the gray economy and firmly returning to a transparent and sustainable development path.

I. From a Tool of Power to a Safeguard for Investment

In the past, a common perception held that Cambodia’s legal system tended to serve as a tool for power dominance rather than a constraint on power. Today, the sustained high-pressure crackdown on online scams is now reshaping this narrative. The contours of a more transparent, standardized, and predictable legal environment are becoming increasingly clear.

Article 1, Chapter 1 of the Law on Investment of the Kingdom of Cambodia states its legislative purpose and intent, with its core objective being to establish an “open, transparent, predictable, and investment-friendly legal framework.”

Samdech Men Sam An, member of the Supreme Privy Council to His Majesty the King of Cambodia has also emphasised that intensifying efforts to combat cybercrime is crucial for ensuring national security and boosting the confidence of those interested in investing in Cambodia. The ongoing optimisation of Cambodia’s legal environment signifies a significant reduction in compliance risks for Chinese investors, with their legitimate rights and interests receiving more effective institutional protection. The law is reclaiming its fundamental role as the cornerstone of investment.

II. From Short-Term Arbitrage to Long-Term Value

Gray industries such as online scams represent a predatory form of “nomadic capital,” characterised by short-term profiteering reliant on opaque rules, depleting social trust before quickly moving on, an approach fundamentally at odds with sustainable development. The Cambodian government’s forceful actions essentially represent an active screening and cleansing of capital types.

The government is declaring through action that it will no longer tolerate short-term capital exuberance at the expense of the country’s long-term credit. The exit of gray capital not only frees up physical assets such as land and buildings that had been distorted by illicit activities but also helps restore order in finance, labor, and commercial practices, creating a fairer competitive environment and opening up new space for legitimate industries to create value.

Echoing this shift, Cambodia-China economic and trade cooperation is deepening its long-term nature. Cambodian Ambassador to China, H.E. Dr. Soeung Rathchavy, noted that China has been Cambodia’s largest source of foreign investment for the past seven years. Of the more than US$ 7.8 billion in investments approved by the Cambodian government this year, China accounts for 53 percent, maintaining its position as the top foreign investor. H.E. Sun Chanthol, Deputy Prime Minister and first Vice-Chairman of the Council for the Development of Cambodia, emphasised that the two countries will establish a regular Cambodia-China Government-Private Sector Dialogue (PPSD) to institutionally ensure communication efficiency and policy coordination, promoting cooperation from project implementation toward sustainable mutual benefit. He also revealed plans to conduct roadshows in China this year to engage with Chinese enterprises and encourage increased investment in Cambodia.

III. From “Shadow Entanglement” to “Clear and Mutually Beneficial” Cooperation

China and Cambodia are longstanding “ironclad friends,” but in recent years the shadow cast by gray industries has been politicised and amplified by certain international forces and used as a tool to attack bilateral relations and stigmatise the Belt and Road Initiative. Such narratives deliberately ignore the significant joint efforts and achievements of both countries in combating crime, aiming to sow discord, undermine mutual trust, and erode the social foundation of cooperation.

It is undeniable that cross-border scam-related crimes once severely affected mutual trust between the peoples of the two countries. In China’s public discourse, Cambodia-related topics were once dominated by negative sentiment to the extent that even Chinese entrepreneurs operating legally in Cambodia faced unwarranted criticism on social media when sharing everyday experiences. Normal exchanges and investment confidence were adversely affected.

A turning point, however, is now emerging. China has consistently supported Cambodia’s governance efforts in a constructive manner. Chinese Ambassador to Cambodia Wang Wenbin stated that China strongly supports the efforts of the Royal Government of Cambodia and Cambodian specialised forces in combating online fraud,” and expressing expressed confidence that the campaign “will continue to make new progress without interruption."

As the results of the crackdown become increasingly evident, perceptions among Chinese business communities in Cambodia are undergoing a marked shift. In private exchanges among entrepreneurs, phrases such as “this time it’s serious” and “it’s now a stage for real doers” have become mainstream. This transition from skepticism to expectation reflects the genuine feelings of Chinese investors regarding the improvement of Cambodia’s business environment and signals a steady repair and rebuilding of public confidence. This constitutes a crucial social foundation for the bilateral relationship to withstand interference and progress steadily.

Conclusion

As a Chinese verse goes, “True friendship, like refined gold, withstands all tests of time.” Cambodia’s thorough and far-reaching governance crackdown is not merely about eliminating crime; it represents a profound recalibration of the country’s national development path.

It signals the rebuilding of the foundations of the rule of law, the return to long-term value, and the cleansing of the cooperation environment.

Once the dust settles, Cambodia's market will be no longer belong to speculators and adventurers, but to those “strategic partners” endowed with vision, patience, and a constructive mindset. A more transparent, well-regulated, and sustainable Cambodia is laying out an entirely new stage to welcome Chinese investors.

By Song Shujun

Director of news centre of Khmer Times Chinese