The Study On Laos-China Trade Current Situation And Future Development

The People’s Republic of China and the Lao People’s Democratic Republic has established diplomatic relations since 1961. The Lao-Chinese relations deteriorated during at the end of 1970s, it caused of the two countries recalled its ambassadors. After several years of coordination, the two governments began re-exchanging its ambassadors in 1989. The cooperation on politic, economy and society between Laos and China was back to the normalization. Nowadays, China and Laos both are similar political, social system and stability of politics. The Laos-China bilateral economic cooperation has been enhancing for over 20 years, the Chinese Investment and trade in Lao PDR have being developed rapidly. The Lao government has been implementing new policies actively to strengthen trade development with ASEAN, China and worldwide. Encouraging line ministries concerned of the Lao PDR such as Ministry of Planning and Investment, Ministry of Industry and Commerce, Ministry of Foreign Affairs, and Ministry Energy and Mines to apply more attraction of foreign direct investment in order to drive Lao economic growth.Laos industry is a backward manufacture, production technology is undeveloped, and the exports mostly are raw material and semi-manufactured goods. To increase the export volume, the Lao Government has began alleviation of controls on private sector, simplification of procedure, reduction of export duty, and enrichment of the cooperation on trade with ASEAN and China in order to seek markets for domestic productions. Rising fund for transport facility investment in Laos to improve the speed and quality of transportation. Participating in the ASEAN regional economic development strategy and learning the lesson learn of Chinese economic policies to reform the economic policy of Lao PDR.This paper is divided into six parts to describe the affection of Laos-China trade cooperation on the Lao economic development:Chapter I Introduction; Chapter II Literature Review; Chapter III Overview of the economic of China and Laos;the development history of the two countries; Laos export foreign and the situation of the Laos main business; Chapter IV Overview of the Laos-China trade development background Laos export to China situation; Chapter V To achieve Laos trade development goals, reforming affirmatively on Lao foreign trade framework, and adjusting the goal and direction; then study on the Laos-China trade development problems existing; Chapter VI conclusion and recommendation on improving the level of the Laos-China trade, and strengthening the Lao economic restructure.