Laos Struggles Under Weight of Chinese Debt Despite New Railway

Laos took on billions in Chinese debt to fund infrastructure projects like dams, trains, and highways. This has drained Laos's foreign reserves and left it struggling to make repayments.

The $6 billion Laos-China railway was meant to transform Laos but its commercial viability is questionable. Laos may be on the hook if railway revenues can't cover the huge Chinese loan.

Sentiment in Laos has shifted away from China to the U.S. amid worries about China's economic influence. But Laos still relies heavily on China.

The railway has brought little economic benefit so far. Chinese companies dominate usage while Lao people can no longer afford trips to Thailand.

Activists criticizing China and Chinese projects have been shot, detained, or deported back to China from Laos, stifling dissent.