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Belt and Road Initiative
Opinion
Philip J. Cunningham

Opinion | As China brings Laos into its fold, will the US seek to reset relations to counter Beijing?

  • The China-Laos railway may have all but sealed Laos’ fate as a satellite state, but the resurgence of Cold War rivalry could tempt Washington to compete for influence
  • Laos could benefit from the added competition, as its economy remains fragile and burdened by debt

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A traditional ceremony is held at the Vientiane railway station in Laos on December 2, 2021. The opening of the China-Laos railway has been heavily promoted by the two countries. Photo: Xinhua
China’s US$6 billion high-speed railway in Laos has just opened for business. Promotional videos in both Lao and Chinese feature shots of a slick new train gliding through tunnels. Lao songs use the Chinese phrase yidai yilu, praising the Belt and Road Initiative. Uniformed train attendants press their hands together in greeting, promising a journey that is as smooth as silk.

It remains to be seen, however, just how much business there is in Laos, a poor country where annual GDP is around US$18 billion and where few citizens can afford to travel on the fancy new train, or would indeed want to, given it is not possible at present to go beyond Botan, a border town best known for its now-defunct casino.

The link to Kunming runs over 1000km, and will certainly be a boon to moving cargo to and from China, reducing the need for back-road trucking. But cynics will point to its penetration of the Laotian heartland as a strategic vulnerability.

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The railway is not necessary infrastructure, nor is it market-driven economic investment, and it won’t be much of a political win-win scenario until Laos discharges its mounting debt, which is partially backed by making five potash mines available to China.

Cyclists ride through a cultural heritage village in Central Laos. The Laotian economy remains fragile, with Chinese investment so far only adding to its debt burden. Photo: Avalon/Universal Images Group via Getty Images
Cyclists ride through a cultural heritage village in Central Laos. The Laotian economy remains fragile, with Chinese investment so far only adding to its debt burden. Photo: Avalon/Universal Images Group via Getty Images

It’s easy to be sceptical about anything that increases the reach of a powerful country of 1.3 billion people into a precarious state of just 7 million, but the need for Laos to bend to outside influences is not new.

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