China and Cambodia ink deal for massive canal project that has raised environmental concerns

Cambodia and China have signed a $1.2 billion deal to finance an ambitious canal project that aims to boost trade efficiency by linking a branch of the Mekong River near Phnom Penh to a port on the Gulf of Thailand, the Cambodian government agency heading the project announced Friday. The deal to fund the Funan Techo Canal was signed Thursday during the state visit to Cambodia of Chinese President Xi Jinping, the agency said in a news release.