Research On China’s Power Investment In Laos Under The Background Of "The Belt And Road"

Since 1975,the Lao government has continued to strengthen the implementation of the policy of opening up to the outside world,and reached an agreement with the Chinese government in 2016 to jointly sign the memorandum on the “the Belt and Road” cooperation plan.With the implementation of the “the Belt and Road” initiative,the number of investment cooperation projects between China and Laos continues to increase,and the areas of cooperation continue to expand.In terms of power investment cooperation,China has actively assisted Laos in recent years,launching multiple investments in the power industry,especially in hydropower,to help Laos become a “Southeast Asian clean energy battery”.China is an essential partner of Laos,and for Laos,China’s electricity investment in Laos is the source of power and has a very positive impact.Based on the background of the “the Belt and Road Initiative”,this paper grasps the current situation of China’s power investment in Laos and analyzes its motivation,using the PESTEL analysis method,it analyzes the impact and constraints of China,s investment in Laos’ electricity field,and puts forward positive policy recommendations for Laos’ future development according to the impact factors.According to empirical analysis,it has been found that China’s investment in Laos’ electricity is beneficial to Laos’ economic development,promotes the growth of Laos’ electricity exports and foreign exchange,provides a large number of employment opportunities for the Lao people,helps Laos continuously improve its infrastructure construction,and strengthens the close connection between Laos and China.However,China’s current power investment in Laos still has such problems as unreasonable investment structure,negative impact on local enterprises in Laos,weak follow-up development of the power industry,high investment risks in the industry,and negative social externality for Laos.In order to better promote China’s investment in Laos’ power sector in the context of the“the Belt and Road Initiative”,this paper puts forward the following suggestions: continue to optimize the investment structure in the power sector,broaden the path of project cooperation,improve the management of later investment projects and build a risk early warning system.By studying the current situation,problems and countermeasures of China’s investment in the power industry of Laos,this paper forms a relatively systematic scientific research paradigm,which to a certain extent provides references for Chinese investors and potential investment countries,and at the same time provides references for the research of related investment fields.