The Value of the Belt and Road Initiative in Laos: The Laos-China Railway Case

Abstract

The Belt and Road Initiative (hereinafter refers to BRI) is a relatively new name, initially it referred to as two separate projects, then as the ‘One Belt, and the One Road’ initiative, then finally as the “Belt and Road Initiative” or “BRI”. The BRI was first proposed by the President of China in 2013, and this idea will be considered the Central Asia is seen as the most vital region for the ‘Belt and Road’ element. In addition, the Belt and Road is seen as a crucial element in the Chinese government’s efforts to stimulate economies of the country’s central provinces, which historically lag behind richer coastal areas. The government uses the Belt and Road to encourage and support businesses in these central regions, allocating budget generously, and encouraging businesses to compete for Belt and Road contracts. The Belt and Road idea is an ambitious plan to develop two new trade routes connecting China with the rest of the world. But the initiative is about far more than infrastructure. It is an effort to develop an expanded, interdependent market for China, grow China’s economic and political power, and create the right conditions for China to build a high-technology economy. The BRI is integral to effort of China for creating its own more secure trade routes or corridor between China and other countries in international and regional levels. There is no doubt that China's intention is also to make participating nations interdependent with the Chinese economy, and thereby build economic and political influence for China.The Laos–China Railway is a significant project under the Belt and Road Initiative Policy of China and it also implemented the Strategy of Laos the Transform the country from “Land-locked” to “Land-linked”. Therefore, in December 2016, the Laos-China Railway Company (老中铁路有限公 or LCRC) a joint venture between three Chinese state-owned enterprises that collectively hold a 70 percent ownership stake and one Lao state-owned enterprise that owns a 30 percent ownership stake signed a BOT concession agreement with the Lao government for the China-Laos for starting the Laos-China Railway Construction. In 2021 the construction was completed and officially launched on December 3, 2021 it is a cross-border railway between Laos and China. The Laos-China Railway Protect could help Laos overcome its logistics infrastructure challenges, especially because the new railway and infrastructure have significantly reduced transportation time and cost, to create a lot of careers for Lao young people, which made the unemployment rate of Laos in 2021 decrease compared to 2020 by 1.05 percent and decrease by 2.25 percent in 2022 compared to 2021. The management and protection of the Lao and foreign employees at the Laos-China railway company in Laos is mainly to enforce domestic laws, especially labor law; internal regulation of company; and labor contract between the company and employee.

Keyword: BRI, Laos-China Railway, International Treaties, Domestic Legislation.

DOI: 10.7176/JLPG/134-06

Publication date:July 31^st 2023