A Study On The Development Of Laos-China Economic And Trade Relations

Laos and China are neighboring countries linked together by mountains,rivers,and the long history of friendly relations that they share together.Citizens of both countries are “brothers who drink a river of water and burn a mountain of wood together.” Laos is located in the road and bridge located between China and ASEAN,which is an important channel and bridge for China to connect with ASEAN.The reformation of opening up in 1986 was a turning point in Laos' foreign policy.After the reform,Laos changed its previous “one-sided policy” and improved its relations with China,which contributed to increased contact with western countries,international organizations,and a gradually formed multilateral and pragmatic-omnidirectional foreign policy.These effects have conclusively led to a gradually improved image on Laos on an international level.The relationship between Laos and China has developed rapidly since the normalization of bilateral relations in 1988.Since the beginning of the 21 st century,the heads of state of both countries signed the “joint statement” in the new century in 2000,indicating the traditional good-neighborly and friendly relations and comprehensive cooperation between the Laotian and the Chinese citizens,welcoming a new stage of development.In September 2009,the Chinese president reached a consensus with the Laotian president on his visit to China and decided to enhance the relationship between both countries as a comprehensive strategic partnership.In the past two years,senior officials of both sides have also exchanged visits frequently.The total volume of foreign trade between Laos and China continues to grow at an increased rate.Laos' s exports to China are mainly mineral products,timber,agricultural products,etc,while the main imports from China are vehicles,textiles and steel,electronic goods,etc.During the 1990's,Chinese enterprises began to invest and set up factories in Laos.Fast forward to today,China is now the largest investor in Laos with an investment field involving hydropower and mineral developments.Chinese enterprises are also actively involved in labor services and contracted projects in Laos.However,the United States has put forward a “return to the Asia-Pacific strategy”,and the political environment and economic situation in the Asia-Pacific region have become increasingly grim.The relations between the two countries are also facing opportunities and challenges at the same time,with problems involving low level of economic development in Laos,as well as the overcapacity in China and the decline of economic growth,which may bring some influence to the cooperation between China and Laos.The economic and trade cooperation between China and Laos has made great achievements,but there are also many concerns in consequence of this effect.In order to achieve a win-win development between Laos and China,both sides must strengthen communication,dialogue between leaders,joint development and cooperation with other neighboring countries,further cooperation in the fields of investment,industrial structure,tourism services,and energy cooperation.