Laos, as a landlocked country in Southeast Asia, holds a strategic position in the global power struggle due to its geographical location and limited economic resources. Like other Asia-Pacific countries, Laos has become an important player in the competition between China’s economic influence and the United States’ (US) power strategies. In particular, China’s Belt and Road Initiative projects and the US’s policies on environmental protection and human rights have made Laos a key point in the regional balance. The evolution of China’s influence over Laos, the presence of the US in the country, and the roles played by regional actors such as Vietnam have shaped the power dynamics in the region.
The relationship between China and Laos is not only economic but also deeply rooted in historical, cultural, and political dimensions. In recent years, China has become one of Laos’ most important strategic partners, and during this period, the two countries have developed cooperation projects based on a “win-win” understanding. It can be said that the Belt and Road Initiative has provided a significant opportunity to accelerate Laos’ economic development. Laos has made important steps toward modernization through China’s infrastructure projects. One of the most notable projects, the China-Laos Railway, has not only enhanced Laos’ regional trade integration but also alleviated the economic disadvantages stemming from the country’s landlocked position.[1] Through this project, China has connected Laos to the Southeast Asian transportation network and contributed to the region’s economic development. The project has stimulated the growth of sectors such as agriculture and tourism, thereby increasing Laos’ geoeconomic importance in the region.
Chinese Premier Li Qiang’s visit to Laos on October 11, 2024, highlighted efforts to deepen the economic cooperation between the two countries.[2] During this visit, a series of agreements were signed to expand projects in agriculture, energy, and infrastructure. Based on these agreements, it is expected that the China-Laos Railway will enhance economic integration and increase trade volumes. These types of investments not only reinforce China’s regional influence but also make significant contributions to Laos’ development goals. The work carried out by the External Relations Department of the Communist Party of China also demonstrates China’s determination to strengthen its political ties with Laos.[3] Such initiatives deepen the relationship between Laos and China not only at the economic level but also within a political and ideological framework. China’s strategy aims to position Laos as not only an economic partner but also an ally in regional and international affairs.
China’s influence in Laos is not limited to economic investments. Xi Jinping’s leadership diplomacy, known as “Xiplomacy,” aims to strengthen the political and cultural ties between the two countries. In this context, high-level meetings and agreements between Chinese and Laotian leaders have enabled the development of policies that promote mutual interests.[4]China’s comprehensive support to Laos seeks to enhance the country’s economic independence and improve the living standards of its people.
On the other hand, the United States has pursued a strategy based on soft power elements to increase its influence in Laos. Investments in areas such as environmental protection, human rights, and education aim to enhance the impact of the US on the Laotian people and government.[5] US Secretary of State Antony Blinken’s visit to Laos reflected the United States’ efforts to develop diplomatic relations with the country. During Blinken’s visit, opportunities for cooperation in areas such as human rights, environmental protection, and education were discussed.[6]
The United States highlights democratic values and environmental sustainability projects to increase its influence in Laos. However, this strategy is unable to provide a sufficiently concrete solution to compete with China’s large-scale economic investments. The US approach towards Laos can be seen less as an alternative to China’s economic projects and more as a strategy to balance China’s influence in the region. In this context, Antony Blinken’s meeting with China’s Foreign Minister in Laos can be interpreted as a direct indication of the two superpowers’ struggle to protect their interests in the region. Furthermore, the US presence in Laos is not limited to economic or diplomatic competition. Laos can be seen as part of the US’s Indo-Pacific strategy to counter China’s influence.[7]
Laos-Vietnam relations represent another key aspect to consider within the context of the China-US competition. There is a historical connection between Laos and Vietnam dating back to the Cold War years. This relationship serves as an important balancing factor for Laos in the context of the China-US rivalry. It is noted that Vietnam’s influence over Laos helps balance China’s increasing economic influence in the region and indirectly contributes to Laos’ relations with the United States.[8]
Vietnam maintains strong ties with Laos, particularly through security and infrastructure cooperation. This demonstrates that Laos is not only balancing its relationships between China and the US but also with regional actors such as Vietnam. The Vietnam-Laos relationship also supports the United States’ strategic goals in Laos. The US’s anti-China policies, combined with Vietnam’s influence over Laos, emerge as a factor that mitigates China’s strategic dominance in the region. In this context, Laos’ relationship with Vietnam should be seen as a crucial power-balancing mechanism in the China-US competition.
In conclusion, Laos emerges as a strategic partner closely monitored by both China and the United States. While China increases its influence over Laos through economic investments and political cooperation, the US focuses more on soft power elements to balance China’s influence. However, the most noticeable difference between the two countries’ approaches lies in China’s modernization of Laos’ infrastructure through concrete development projects, directly supporting its growth. In contrast, the US aims to support Laos in areas like democratic values and environmental sustainability. China’s approach offers a long-term and comprehensive development strategy, while the US’s strategy remains more limited in scope. This situation has led Laos to pursue deeper collaborations with China in foreign policy, while ensuring that the US remains an important balancing factor in the region. Contributions from regional actors such as Vietnam further support this balancing policy. In the future, how Laos will strike a balance between these two powers will play a critical role in shaping regional geopolitical dynamics.
[1] “China-Laos Bri cooperation a successful model for participating countries”, Global Times, https://www.globaltimes.cn/page/202310/1299858.shtml, (Date Accession: 31.12.2024).
[2] “China willing to deepen all-round cooperation in all fields with Laos-Chinese premier”, Xinhua, https://english.www.gov.cn/news/202410/12/content_WS670955f1c6d0868f4e8ebbaf.html, (Date Accession: 31.12.2024).
[3] “Liu Jianchao meets with Thongsavanh Phomvihane, Minister of the International Department of the Lao People’s Revolutionary Part”, International Department of Central Committee of CPC, https://www.idcpc.org.cn/english2023/bzhd/202411/t20241115_165967.html, (Date Accession: 31.12.2024).
[4] Subramanian, S., “Laos and ‘Xiplomacy’”, The Diplomat, https://thediplomat.com/2022/10/laos-and-xiplomacy/, (Date Accession: 31.12.2024).
[5] Hunt, L., “Leadership change in Laos: A shift away from China?”, The Diplomat, https://thediplomat.com/2016/01/leadership-change-in-laos-a-shift-away-from-china/, (Date Accession: 31.12.2024).
[6] France-Presse, A., “Blinken arrives in Laos, set for talks with Chinese foreign minister”, Voice of America, https://www.voanews.com/a/blinken-arrives-in-laos-set-for-talks-with-chinese-foreign-minister/7715061.html, (Date Accession: 31.12.2024).
[7] “China-Laos Bri cooperation a successful model for participating countries”, opcit, (Date Accession: 31.12.2024).
[8] “Recalibrating the Laos-Vietnam special relationship for the 21st Century”, The Diplomat, https://thediplomat.com/2024/08/recalibrating-the-laos-vietnam-special-relationship-for-the-21st-century/, (Date Accession: 31.12.2024).
