Laos

This case study examines how China–Laos cooperation under the Belt and Road Initiative is transforming Laos from a landlocked to a land-linked economy through large-scale investment in transport, energy, agriculture, and human capital. It highlights the China–Laos Railway and hydropower and photovoltaic projects as key drivers of trade growth, regional integration, electrification, and poverty reduction, supported by agricultural technology transfer, rural e-commerce, and education and cultural exchanges. At the same time, it underscores major structural challenges, including Laos' high and largely China-held external debt, governance gaps in PPP/BOT projects, and persistent environmental risks. The study argues that the long-term sustainability and replicability of this cooperation model depend on stronger fiscal and regulatory capacity, greater transparency, and more robust environmental and participatory governance.