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Faster by rail, the line linking China and Laos

By YANG RAN and LI HANMENG | China Daily | Updated: 2024-09-17 14:52
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The Colorful Guizhou tourist train arrives in Vientiane Station on the China-Laos Railway on May 9. DU DAPENG/XINHUA

"Arguably, the most significant change in recent decades has been its economic transformation and global integration. China has achieved remarkable GDP growth and rapid industrial growth, lifting hundreds of millions out of poverty," he said."It has advanced in tech sectors, with significant investments in research and development."

He also highlighted the fact that economically, the country has been a major investor in Laos, contributing to infrastructure projects through initiatives such as the Belt and Road Initiative.

The China-Laos Railway, a pivotal BRI project, has turned Laos from a landlocked country into a land-linked one, and into a crucial corridor for enhancing trade connections between Laos, China and other regional countries, Sidlakone said.The railway has significantly spurred local development by driving economic growth, boosting tourism and creating employment opportunities, he added.

From April 13 of last year to Aug 29 of this year, the line's international passenger train carried 1.14 million passengers, including tourists from 100 countries and regions, according to data from its operator, the China Railway Kunming Group.

The number of cross-border freight trains has increased from an initial two per day to 14. The range of goods transported has expanded dramatically, from 10 categories — such as fertilizers and general merchandise — to 2,900 categories, including electronics, photovoltaics and cold-chain fruits.

Since the China-Laos Railway began operations in December 2021,residents in areas along the line have been employed in freight handling, logistics, security and cleaning, indirectly generating tens of thousands of jobs, according to the group. Nearly 60 percent of the workforce involved in the railway's operation and maintenance are Lao nationals, many of whom are part of the first generation of railway technicians in the country.

"Investments from China have led to improved transportation, energy and communication networks in Laos, boosting economic development and creating job opportunities for the local populace," Sidlakone said."For China, access to a growing Southeast Asian market and strategic regional positioning via Laos is beneficial to expanding its economic influence."

Laos serves as a crucial trade corridor, facilitating the exchange of goods between China and members of the Association of Southeast Asian Nations, he said.

"China and ASEAN have engaged in negotiations that resulted in numerous tax incentives and the removal of many policy barriers.This has greatly promoted import and export trade between China and ASEAN, as well as with Laos."

As Laos takes on the role of ASEAN's rotating chair this year, Sidlakone anticipates a deepening of cooperation between China and the regional bloc.

"Under Laos' chairmanship, cooperation between China and ASEAN is poised to deepen further. The collaborative dynamics are likely to enrich ASEAN's regional architecture and economic landscape, and will necessitate careful navigation of geopolitical challenges," he said.

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