China, Laos ink new trade deals after rail project

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China and Laos signed new agreements on trade, education and technology following a bilateral meeting between the leaders of the two countries on Tuesday.

Chinese President Xi Jinping met with his Laotian counterpart Bounnhang Vorachit in Beijing, a day after the high-profile Belt and Road Forum (BRF) concluded in the Chinese capital.

Chinese President Xi Jinping and his Laotian counterpart Bounnhang Vorachith attend a bilateral meeting at Diaoyutai State Guesthouse in Beijing, May 16, 2017. /Reuters

The two-day summit was attended by 29 heads of state and government leaders from across the world, as well as leaders of key international organizations. They released a joint communique at the end defending globalization and free trade.

During the bilateral talks with Laos, Xi said the two countries should deepen cooperation under the Belt and Road framework.

He also stressed the importance of advancing comprehensive cooperation, aligning development strategies, and strengthening coordination in international affairs to jointly safeguard China-ASEAN ties and regional peace and stability.

Bounnhang applauded the fruitful results of the Belt and Road Forum for International Cooperation, saying it will significantly promote Asian connectivity and economic growth and bring more development opportunities to his country.

The two countries did not give details on the deals they signed.

China is Laos' second largest trading partner. In 2016, the trade volume between the two countries reached 2.34 billion US dollars.

Chinese companies also invested 6.7 billion US dollars in construction projects last year, 30.1 percent up from 2015.

A Chinese boat with a team of geologists surveys the Mekong River, at the border between Laos and Thailand April 23, 2017. /VCG Photo

One of the most important projects between the two countries, the China-Laos railway, was even highlighted in Xi's keynote address at the BRF's opening ceremony.

"We have accelerated the building of the Jakarta-Bandung high-speed railway, the China-Laos railway, the Addis Ababa-Djibouti railway, and the Hungary-Serbia railway, and upgraded Gwadar and Piraeus ports in cooperation with relevant countries," Xi said.

Fast facts on the China-Laos railway:

China-Laos railway. /VCG Photo

The ground-breaking ceremony was held in December 2015.

Construction started in December 2016; the railway is expected to be completed in 2021.

Total length of the railway: 414.332 kilometers, with over 62.7 percent of bridges and tunnels.

The rail line links southwest China city Kunming to Laos' capital city Vientiane, with 32 stations along the route.

The designed operating speed is 160 km per hour.

Total investment: some 40 billion yuan (5.8 billion US dollars), with 70 percent coming from China.