Chinese Engagement in Laos

During the colonial period, Laos welcomed the smallest overseas Chinese communities in Southeast Asia, communities that almost disappeared after the communist forces seized power in Laos in 1975. Yet, this landlocked country shares a long history with China and even experienced a Golden Age thanks to the thriving caravan trade between Yunnan and mainland Southeast Asia. This paper argues that China’s growing presence is far from eroding the power of the Lao communist regime. Instead, Chinese engagement allows the Lao state to cope with the challenges of globalization and to maintain its power at the same time. The paper will highlight Chinese engagement in Laos throughout history by emphasizing their recurrent patterns of intermediation. Then, it will describe how Chinese networks have become key partners of the Lao state’s development policies. However, rising uncertainties over the neighbouring communist ally’s economic potential may push China to revise its development strategy in Laos.