The Sino-Laos Railway and the Connectivity Potential for a Small State

Abstract

The Laos National Railway network is a milestone in the country’s transportation history. From the Chinese perspective, the China–Laos Economic Corridor (CLEC) is a vital sub-component of China’s Belt and Road Initiative (BRI). From the Laotian perspective, the Southeast Asian country intends to transform from a land-locked country (the only country within ASEAN or the Association of Southeast Asian Nations) into a land-linked country with Chinese equipment and infrastructure inputs. Through the railway system, Laos will be connected to maritime ports in China, Cambodia, Thailand and Vietnam, potentially benefiting its tourism industry, workforce mobility, land sales, services/retail outlets and intra- as well as extra-ASEAN trade and investments. Laos has proven to be the most politically stable, regime-reliable, perhaps complementary entity that has a stake in the success of the pan-Asian railway for the sake of its own economic development at the moment. At least, it does not require complicated diplomatic efforts, unlike the cases of Vietnam and Myanmar at this point of time. Thus, it may turn out to be a win–win situation for both the Laotians and the Chinese.