In 2002, China announced an undisclosed debt cancellation estimated at the time to be between $60 million and $1 billion.
Cambodia, one of the poorest nations in the world, typically needed aid from both sides to supplement its annual budget and to develop.
China is also a significant investor in Cambodia in garments, textiles, hydropower, agriculture and mining.
Decades of conflict shattered Cambodia's infrastructure - its roads, ports and railways.
More than 100 police cleared out vendor stalls surrounding the Olympic Stadium in Phnom Penh on Friday.
In the last year, more than 120,000 Cambodian workers abroad have sent some $150 million in remittances.
The Bank cited recovery in the garment and tourism sectors, along with steady growth in agriculture.