Can Obama help Laos emerge from China’s shadow?

Historic visit may be a boost, but Vientiane’s economic reliance on its giant neighbour means it faces a tightrope walk in counterbalancing Chinese influence

US President Barack Obama and Laos' President Choummaly Sayasone at the Asean meeting in California in February 2016. Photo: AFP

President Barack Obama’s arrival in Laos for the Asean leaders’ summit this week coincides with a struggle by Laos’ communist party leadership to emerge from the shadow of China’s influence.

China plays a key role in Laos’ economic transformation, with current investments in 760 projects worth US$6.7 billion. Laos’ annual growth rate has soared to 7.8 per cent, lifting per capita income to US$1,730 last year, helped in large part by Chinese investment.

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