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Laos-China Railway: Golden Key of the Indochina Peninsula Economic Corridor

Laos-China Railway: Golden Key of the Indochina Peninsula Economic Corridor

In December 3, 2021, following the instructions of the leaders of Laos and China, Laotian passenger train C82 and Chinese passenger train C3 simultaneously departed on Track 1 of Vientiane Track 1 and Kunming Station Track 1, marking the official opening of Laos-China Railway and attracting worldwide attention. The Laos-China Railway, which runs from Kunming in Yunnan Province in the north to Vientiane, the capital of Laos, in the south, is the first overseas railway jointly built and jointly operated by Laos and China and is directly connected to China’s railway network. With a total length of 1,035 kilometres and 50 new stations, it can be reached from Vientiane to Kunming in about 10 hours. The 10,35-kilometer-long railway is a docking project between the China-proposed Belt and Road Initiative in 2013 and Laos’ strategy to convert itself from a landlocked country to a land-linked hub.

From April 2023, international passenger trains have been operated every day, sending a total of about 110,900 international passengers. The economical, convenient, comfortable and affordable way of travel has been the first choice of many cross-border tourists, scholars and businessmen from the region.

Laos -China Railway has been put into operation, ushering in a new era of railway transport in Laos

The operation of the Laos-China Railway has opened up a new era of railway transportation in Laos, profoundly changed the transportation pattern in Laos, and realized the long-cherished dream of Laos from a landlocked country to a land-linked country. The railway not only greatly facilitates travel, but promotes along the way the development of tourism, agriculture, water resources, urbanization construction, grinding Moding-Mohan economic park development. The railway facilitates society and people’s cooperation and exchanges. The two countries, China and Laos, are working together to speed up the construction of the economic corridor, which is of great significance. At the same time, as an important backbone of the Trans-Asia railway, the Laos-China railway will also serve as a “golden key” for Laos to connect with China to the north and Thailand, Malaysia, and other ASEAN countries to the south, exerting a positive impact on ASEAN and Greater Mekong Sub-region economic cooperation.

By September 3, 2021, nine months after its opening, the Laos-China railway had about 6.71 million tourists, including 700,000 from Laos and 5.87 million from China. By 2024, it is reaching about 10 million. A total of 7.17 million tons of goods have been shipped, including 1.28 million tons of cross-border goods. The goods are valued at about 40,77 billion Renminbi (About 5.74 billion US Dollars) in total. Goods transported via the Laos-China railway have expanded from initial 500 varieties to more than 4,000 currently, thanks to a series of measures and efforts implemented by Kunming Customs, such as the construction of a smart port. In the first six months of 2024, the Laos-China railway has handled over 4 million tons of imported and exported goods, up to 22.8% year on year. Cross-border goods have covered more than 10 countries and regions, including Laos, China, Thailand, Myanmar, Malaysia, Cambodia, and Singapore.

The Western Media often maliciously smear the China-Laos railway, while South Asian and Southeast Asian countries firmly support it

The Success of the Laos-China railway has made some Western media and people jealous, and have been spreading false information in an attempt to smear the railway. US Free Asia Television reported that the Laos-China railway line only carries China cargo and not cargo from Laos. The same media also reported that the Laos-China railway has put Laos into a debt trap and that it damages the environment, with the purpose of driving a wedge between Laos and China, which sounds about the same with African countries, especially the Kenya Railway (Mombasa- Nairobi Railway), also built by China.

In the face of scepticism from some of the Western media, Laos’ other neighbouring countries have chosen to stand firm on the Laos-China railway. Burin Adulwattana, Bangkok Bank’s chief economist, said the Laos-China railway project had the opportunity to be a “game changer” for the world economy, which would be a win-win situation. Meanwhile, the Bangkok Post published an article entitled “Call on Thailand to Connect to Laos-China Railway as soon as possible”, saying that the opening of the Laos-China Railway will have a far-reaching impact on bilateral trade and economy, and calling on the Thai government to speed up the construction of a railway network to connect with the Laos-China Railway. Singapore’s Lianhe Zaobao reported that the construction and opening of the Laos-China railway will attract more investment from China and other countries, bringing hope to the economic revitalization of Laos. In 2024, the same railway is attracting investments from neighboring countries like Thailand, Myanmar, etc.

General Secretary of the Lao People’s Revolutionary Party Central Committee and President Thongloun Loun back in 2021 spoke highly of the achievements made in various projects since the opening of the railway, saying that the Lao people are very proud of the railway and hope that all Lao people can take the train. At the same time, the opening of the Laos-China railway also meant more convenient exchanges between Lao and Chinese people and boost international trade. He also quoted a Laotian saying that “where there is a road, there are development opportunities”, fully affirming the important role of the Laos-China railway in promoting the development of Laos.

Conclusion

Looking back from 2021 to 2024, the Laos-China railway is enhancing China-Laos, ASEAN-China economic and trade, investment, tourism, employment, cultural interaction, and personnel exchanges. The railway is also an important driver of cooperation, it is bringing real income. The railway has achieved both economic and social benefits and has played a great role in promoting interconnectivity, the regional economic and trade exchanges, and the economic prosperity along the route.

Former Laos Prime Minister Phan Khan said that the railway is conducive to promoting the economic and social development of Laos and has become an important link between Laos and other countries in the region. Actual Lao Prime Minister Sonexay Siphandone said in an interview that the Lao-Chinese railway greatly facilitates people’s travel, promotes the production and export of commodities, and attracts a large number of tourists.

Crossing mountains and rivers, the Laos-China railway has built a bridge of mutual benefit for the opening up and cooperation of the Indo-China Peninsula. Today, the Laos-China railway has developed in tandem with passenger and cargo transportation, promoting the prosperity of the international economy and trade, and is a golden key driving the development of the Indochina Peninsula.

Li Yan, Professor at the School of Marxism, Yunnan University 

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