Rising Chinese Investment Could Overshadow Laos’s Successful Coronavirus Response

Even though there are fears that Laos could enter a second wave of COVID infections, the Prime Minister’s Office has proposed a “fast-track” immigration policy for some privileged Chinese and Vietnamese. Under this proposed new system, diplomats, technical experts, and foreign laborers can enter Laos and completely bypass the usual two week self quarantine period. 

According to the World Health Organization’s most current Situation Report in Laos, the only landlocked nation in Southeast Asia has a total of 23 confirmed Coronavirus cases. As of now, it seems people can now go out and about. As of mid May, citizens of Laos are free to travel domestically, but they have yet to be allowed to travel internationally. Interestingly, the government first implemented policies of mask wearing and hand sanitization as early as February 3rd. Those policies have yet to be modified. What’s more is that this came before schools, businesses, and a general stay at home order were implemented mid March to early April. When I consider all of this, I have to point out the stark contrast in how Laotians and Americans are handling the pandemic. For a country literally under China and without nearly the level of America’s wealth and infrastructure, the case of Laos must be a success story. 

While some Laotians may be celebrating, Lao nationalists and policy makers may not like the idea that a Chinese company will have control over most of the electrical power grid of Laos. Back in early September, the Laotian company Electricite du Laos negotiated the agreement with its Chinese counterpart the China Southern Power Grid Corporation. For Laos, Chinese investment would not only bring further development but also strengthen Laos-China ties. Writer Patrick Winn from The World adds that Laos’s deal with China will allow the small Southeast Asian nation to become the “battery” for its neighbors. Electricity that Laos will provide will literally light up the emerging economies of Thailand, Vietnam, and China. For China, access to the Laotian market and the chance to extend its influence southward seemed too enticing. I would be interested in hearing how ordinary Laotians feel about the high amount of Chinese investment in their country. I also question who is benefiting the most from increased ties with China. Do the majority ethnic Lao and ethnic minorites feel the influence of China the same? 

 Being more familiar with Vietnam, I know that there has been tension in recent years. Back in 2018, I remember that many Vietnamese were worried about their government leasing land to China for a stipulated 99 years in special economic zones. Even though the zones were open to any foreign investor, rising anti-China anxieties has been on the rise. 

This pattern of foreign Chinese investment around the world alarms some in the West. Eventually, developing nations will have to repay China’s generosity. When nations can’t cough up the cash, China offers to instead have land leased to them. The Bangkok Post article labels this Chinese tactic as “debt trap diplomacy.” One may see this as an attack on national sovereignty or the pragmatism of the weaker buddying up to the mighty. Either way, there’s obviously a power imbalance still. Given that Laos is not as well off as Vietnam or Thailand, I would also be interested in looking further into the history of foreign investment and transnational partnerships in Laos. 

Electronic Sources:

1. https://www.who.int/laos/internal-publications-detail/covid-19-situation-report-for-lao-pdr-15-11—24-september-2020 

2. https://laotiantimes.com/2020/08/07/laos-considers-fast-track-immigration-for-two-nationalities/  

3. https://www.bangkokpost.com/business/1980027/chinese-firm-to-run-lao-electric-grid 

4. https://www.pri.org/stories/2020-09-30/how-chinese-company-took-control-entire-nation-s-electrical-grid

5. https://www.reuters.com/article/us-vietnam-protests/china-warns-citizens-in-vietnam-after-protests-over-economic-zones-idUSKBN1J70NS

6. Image courtesy of https://www.worldbank.org/en/country/lao/publication/covid-19-to-impact-…