The leadership of Cambodia has announced that it will host a Chinese naval expansion that will have Chinese military assets using it soon. For the U.S., this represents a scenario that will be of great concern.

According to a top Royal Cambodian Navy official revealed to Nikkei Asia last Saturday that Beijing is working with Phnom Penh on a project. That project is increasing the size of the port area and building a shipyard for repairs on PLAN vessels. This base will be touching the Gulf of Thailand, reported Asian Nikkei.

Vann Bunlieng, a three-star vice-admiral mentioned that the plans include dredging to increase the water depth around the base. It is a requirement to allow larger ships to enter the waters. Only small ships can use it for now.

He added that Beijing is a partner in the building of the port and repair areas of the upgraded naval facility.

Stressing on such factors like helping Cambodia spend less money on ship repair if bigger ships are acquired later on. Other sources of revenue are getting into the repair and service of private vessels, cited Business Insider.

The Strategic and International Studies on Friday published recent satellite images of the site on Cambodia. It is alleged that the U.S. paid for those facilities that were destroyed. American military leaders and concerned officials are mulling over this development.

Changes in Cambodia and the allowed Chinese access may not be a rumor anymore. Seeing the demolition of the building signal an ominous change, said the CSIS.

It was addressed in a letter to Cambodia's Minister of Defense Tea Banh from Pentagon official Joseph Feather last year. He was concerned about the status of the facilities that are paid for by the US government, noted Reuters.

The U.S. deputy assistant secretary of defense for South and Southeast Asia said that Cambodia's change of mind to choose the more lucrative hosting of the Ream base.

The Vice-Admiral denied the reports of the deal with the Chinese military. Even the Cambodia prime minister and Chinese officials have slammed it as rumors instead, mentioned Asia Times.

CSIS made a confirmation that the demolished building in the middle of September used to be the tactical headquarters of the National Committee of Maritime Security in Ream base.

One building funded by the U.S. that is not demolished has the smaller U.S. patrol boats given to the Cambodian Navy.

The New HQ is 20 kilometers from Ream, with the NCMS transferred from the base. It was done last May according to posts on Facebook.

Despite the denials, a Chinese Metallurgical Group Corporation and a state-owned enterprise published a previous report. This was not cited by either Cambodian or Chinese officials but kept under the radar.

Before the statement got taken down to avoid issues, it was captured and it read cooperation framework agreement with Cambodia's defense authorities for a Port Expansion Project.

Cambodian officials have not been reached for comment about the Cambodia Naval expansion deal with China.