China’s growing influence in Laos, marked by expanded investment and trade, has led some international agencies to warn Laos about an unhealthy financial dependence on China. Analysts say Laos is looking to balance China’s influence by drawing support from longstanding backer Vietnam as well as the West.
In 2014 China became Laos’ leading investor with funds totaling more than $5 billion, with projects in mining, resources, hydropower and agribusiness.
Laos and China have agreed to build a $7 billion high-speed railway project, part of China’s strategy of ‘One Belt, One Road’ plan of rail links across Central Asia as well as South East Asia.
The train routes into South East Asia will begin in Kunming in China’s Yunnan province, with its more than 150 bridges, 76 tunnels and 31 train stations running through Laos, to Vientiane. From there it will connect to Thailand with plans of trains eventually reaching Singapore.