Laos advised to share in China's Silk Road project
Laos advised to share in China's Silk Road project
Laos should look at ways to benefit from China's 21st Maritime Century Silk Road project to boost regional trade and connectivity, the Lao ambassador to China said recently.
Ambassador Somdy Bounkhoum pointed out that Laos is a landlocked country and the Silk Road project is mainly sea-based. In terms of regional connectivity, Laos is mainly reliant on the planned Laos-China railway, but could turn this to the country's advantage.
“We shouldn't just stand by and watch China playing ping pong with other countries in the region. We should prepare something so we can benefit from the project, such as hospitality and other services relating to the Laos-China railway,” he said.
Last month Vientiane Times attended the 7th 10+3 Media Cooperation Forum in Beijing, where Asian journalists learnt more about the 21st Century Silk Road project.
The journalists met with Professor Ding Yifan from the Institute of World Development, Development Research Centre of the State Council of China to discuss the project.
Professor Ding said Laos' connection with the Silk Road would be through the planned high-speed railway connecting China to Laos and other countries in the region.
“The Asia railway network will pass through Laos. Laos will be a transit point for travel to Cambodia, Thailand and other countries, so there will be a chance for businesses and other services to operate along the railway,” Professor Ding said.
Professor Ding said hospitality, tourism and other services would develop along the railway and it would be an attractive location for investors.
Ambassador Somdy said Laos would support the Silk Road project by assisting businesses coming to the country to assess the potential here.
“Laos hopes to develop tourism resources, culture and services to attract investors and encourage foreign tourists to spend some time in Laos and then continue on to other countries,” he said.
The Silk Road economic belt was initiated in 2013 by Chinese President Xi Jinping when he visited four central Asian countries. A month later the construction of the 21st Century Maritime Silk Road was initiated by President Xi when he visited Indonesia.
Since then, the plan to revive the Silk Road and the maritime Silk Road has become a major aspect of China's development strategy abroad.
Professor Ding said the Silk Road was the name given by foreign merchants to the old trading route from China to the West. China's favoured products, such as silk and tea, were transported to Europe along this overland route.
Later on, when China found a way to ship these goods by sea, heavier products such as porcelain were added to the list of exports. Even Buddhism was introduced to China from India via the Silk Road.
“China is in the process of rapid development, which Westerners call China's rise, while Chinese people call it the rejuvenation of Chinese civilisation. Reviving the ancient Silk Road is part of Chinese civilisation's revival,” Professor Ding said.
Since opening up to the outside world, China's development started in the coastal provinces and regional disparity is growing. China's government now wants to rebalance regional development.
In the Silk Road economic belt, more than 4,600 km will be concentrated in China's Western and inland provinces. The revival of the Silk Road will require a lot of investment in public infrastructure in those regions, which will be critical for China's regional rebalance.
China has launched a fund to recreate the Silk Road, and is seeking US$400 billion. New financial institutions will provide the funding to revive the Silk Road, and the world economic picture will be completely changed within a few years when various aspects of the Silk Road revival are put into practice.
