The governments of China and Laos have deepened their bilateral ties significantly over recent years, with economic and infrastructure cooperation taking center stage. In March 2025, the Laos-China Railway celebrated a major milestone, surpassing 56 million tons of cargo transported since its inception in December 2021. The rapid growth of freight volume, driven by high-tech integration and smoother customs processes, underscores the corridor’s growing strategic importance for both countries.
The China-Laos Railway is not only a catalyst for trade but also a symbol of broader strategic collaboration. According to the 2024 Annual Summary Meeting of the Laos-China Cooperation Commission, Laos reported a sharp increase in trade with China, reaching US$8.23 billion in 2024. Exports to China, particularly iron ore, tapioca starch, rubber, and bananas, have grown significantly, while the import of Chinese machinery and tech products flow into Laos and Southeast Asia. This trade expansion is complemented by growing Chinese investments in Laos, particularly in energy, mining, and infrastructure. With more than US$18 billion invested in 927 projects since 1989, China remains Laos’s largest foreign investor.
At the political level, the Laos-China strategic partnership has seen further development through high-level exchanges. During the Boao Forum for Asia 2025, Lao Prime Minister Sonexay Siphandone met with Chinese Vice Premier Ding Xuexiang. Both leaders reaffirmed their commitment to strengthening cooperation across sectors, including trade, infrastructure, and security, which are underpinned by the Belt and Road Initiative.
Further enhancing the ties, Laos is also making strides in its aviation sector, with Lao Airlines preparing to introduce the China-made C909 aircraft into its fleet. This move highlights China’s growing influence in the region's aviation industry and provides Laos with a strategic boost to its transportation sector, complementing the ongoing infrastructure improvements fostered by the Laos-China Railway.
