Bridging land and future: China-Laos win-win economic partnership flourishes

Editor's note: Xu Yi is a business reporter at the CGTN. The article reflects the author's views and not necessarily those of CGTN.

2026 marks the 65th anniversary of the establishment of diplomatic relations between China and Laos. Bilateral economic and trade cooperation has expanded from conventional sectors into emerging frontiers including the digital economy and green energy, brimming with robust vitality across all dimensions and at diverse levels. In 2025, bilateral trade between the two countries hit $9.82 billion, growing by 19.3% on a yearly basis, a testament to the resilience and enormous untapped potential of bilateral commerce. Laos' largest source of foreign investment, China has invested in nearly all industrial sectors, ranging from aerospace down to grassroots projects, injecting robust momentum into Laos' economic growth.

A railway forges a golden regional economic artery

A landmark in bilateral cooperation, the China-Laos Railway continues to unleash far-reaching benefits. Since its launch in 2021, the railway has evolved into an efficient international logistics corridor linking China, Laos and the broader ASEAN region. To date, it has handled over 70 million passenger trips and more than 80 million tonnes of cargo, including 18 million tonnes of cross-border freight and 3,000 types of commodities, greatly boosting regional logistics efficiency. Centered on the railway, major cross-border infrastructure projects between the two countries have advanced in tandem, driving steady annual growth in cross-border trade with total import and export value exceeding 80 billion yuan. The range of traded goods has increased from over 500 categories to more than 3,800. 

Thanks to the railway, Laos has made solid strides from a land-locked nation to a land-linked hub. More than a mere transport route, the China-Laos Railway stands as a pathway for shared development, win-win cooperation and improved wellbeing for peoples on both sides.

Livelihood-focused cooperation delivers benefits to ordinary households

At its core, economic cooperation is designed to deliver tangible dividends to local people. As Laos' top investor for many years, China has broadened its investment footprint from mining and agriculture to healthcare, education and public services. 

In Vientiane, the Chinese-aided Mahosot Hospital, one of Laos's largest general medical facilities, plays a key role in improving local medical services and enhancing the technical skills of medical staff. 

A poverty-alleviation program has settled in Jinhua Village of Vientiane, rolling out vegetable cultivation pilot schemes with smart greenhouses and supporting cold-chain facilities, lifting local incomes by over 30%. 

On April 20 2026, the China-Laos 500kV power interconnection project linking China's Yunnan Province with northern Laos went into full operation, laying a solid foundation for sharing electricity between Laos and fellow ASEAN members. 

From a railway and hydropower station to a hospital and tailored technical support, these concrete Chinese-initiated solutions enable communities neighboring China to truly experience the fruits of mutually beneficial cooperation.

New growth drivers fuel industrial transformation

Driven by advances in new productive forces, the digital economy has emerged as a fresh growth engine for bilateral ties.

In recent years, China has supported the construction of Laos' nationwide 5G network. The Beidou Satellite System and Laos-1 Satellite have been deployed for agricultural and forestry surveying as well as disaster prevention and mitigation, underpinning smart city and digital governance initiatives across Laos. 

In 2025, the China-Laos AI Innovation Cooperation Center was inaugurated in Laos, the first specialized innovation platform for artificial intelligence cooperation inked between China and any ASEAN member state. It sets a benchmark for inclusive AI development and regulatory collaboration across the region and unlocks fresh opportunities to empower traditional industries with digital technologies. 

From a landlocked economy to a land-linked gateway, Laos is unleashing robust economic momentum; and from conventional commodity trade to digitally-enabled industrial development, the thriving new chapter of China-Laos economic and trade cooperation speaks for itself.