Sound dealings build China’s image in Laos

By Bi Shihong Source:Global Times Published: 2016-5-3 22:03:01

At the invitation of Chinese President Xi Jinping, Bounnhang Vorachit, general secretary of the Central Committee of the Lao People's Revolutionary Party and also president of Laos, is visiting China from Tuesday to Thursday. As this year marks the 55th anniversary of the establishment of China-Laos diplomatic relations, Bounnhang's visit is expected to push bilateral ties to a new height.

Currently, connectivity and industrial cooperation are the key parts of China's efforts with ASEAN countries to push forward the "Belt and Road" initiative and deepen the Lancang-Mekong Cooperation.

As a land-locked country, Laos always hopes to be better connected with other countries and wants this to be translated into a national strategy by drawing upon the experiences of China's reform and opening-up so as to become a hub that connects neighboring countries. Thus Laos fully understands and embraces China's "Belt and Road" initiative.

Across Laos, Chinese enterprises and people work with locals on a wide variety of fields such as trade, logistics, agriculture, mining, transportation and development zones. By the end of October, 2015, China has invested a total of $5.71 billion in Laos as its largest foreign investor and aid provider, and the second biggest trading partner.

But it does not mean Laos has no concerns about China. It does not want to put its entire stake in one country and also vies for aid from other powers outside the region. Chairing ASEAN this year is also taken by Laos as a chance to balance and bargain among big powers.

How China conducts bilateral cooperation with Laos will influence how other ASEAN members perceive the "Belt and Road" initiative. For instance, if China insists on taking the largest share in cooperation projects, Laos may feel anxious about an aggressive China. Laos' huge trade deficit with China makes it concerned about being economically colonized by China.

In April, Chinese Foreign Minister Wang Yi said during his visit to the country that China is willing to work with Laos to make a plan for the "Belt and Road" initiative and to help this Southeast Asian country improve its infrastructure and connectivity. The two sides also discussed industrial cooperation and collaboration in fields like water resource, agriculture and poverty alleviation.

As the China-Laos trade develops rapidly, the bilateral economic cooperation has ushered in a new era. In August 2015, the two governments signed an agreement in developing the China and Laos Mohan-Boten Economic Cooperation Zone. This is the second cross-border economic zone China has established with a neighboring country, the first being the China-Kazakhstan Horgos International Border Cooperation Center.

Construction of the China-Laos railway was started in December. Along with the China-Thailand rail cooperation we can see  that a transportation artery is being built. This will be a landmark in the implementation of the "Belt and Road" initiative and a strategically and historically significant cooperation project in Asia.

The railway will enormously boost economic cooperation and personnel exchanges between Laos and its neighboring countries. It will also accelerate the integration of ASEAN and narrow the development gap among these countries. Other Southeast Asian countries will also be encouraged to join the buildup of the "Belt and Road" project.

China needs to export competitive industrial capacity that meets international demands, instead of polluting or destroying the local environment. It should pay heed to ecological protection and urge Chinese enterprises to fulfill their social responsibilities. Chinese companies need to rebuild their international images by adhering to local laws and cultures, enhancing quality of projects and produces, and responding to local people's demands.

In terms of people-to-people exchanges, China can cultivate talented people for Laos through various approaches such as vocational training and field trips, so that it can inject more Chinese wisdom and motivation into Lao economic and social development.

Driven by China's "Belt and Road" initiative, the Lancang-Mekong cooperation and the eagerness of the public on both sides, the China-Laos cooperation will be further expanded in both width and depth.

The author is a professor at the School of International Studies at Yunnan University. opinion@globaltimes.com.cn



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