Opinion | As China brings Laos into its fold, will the US seek to reset relations to counter Beijing?
- The China-Laos railway may have all but sealed Laos’ fate as a satellite state, but the resurgence of Cold War rivalry could tempt Washington to compete for influence
- Laos could benefit from the added competition, as its economy remains fragile and burdened by debt
It remains to be seen, however, just how much business there is in Laos, a poor country where annual GDP is around US$18 billion and where few citizens can afford to travel on the fancy new train, or would indeed want to, given it is not possible at present to go beyond Botan, a border town best known for its now-defunct casino.
The link to Kunming runs over 1000km, and will certainly be a boon to moving cargo to and from China, reducing the need for back-road trucking. But cynics will point to its penetration of the Laotian heartland as a strategic vulnerability.
The railway is not necessary infrastructure, nor is it market-driven economic investment, and it won’t be much of a political win-win scenario until Laos discharges its mounting debt, which is partially backed by making five potash mines available to China.
It’s easy to be sceptical about anything that increases the reach of a powerful country of 1.3 billion people into a precarious state of just 7 million, but the need for Laos to bend to outside influences is not new.
