Status Quo Of China-laos Economic And Trade Relations And Its Restrictive Factors

Agriculture has been the major industry in Laos for many years.Economy in Laos is under-developed.While China has gone through over forty years reform and opening up,which has capital advantage,technology advantage when compared with Laos.Laos government very glad to welcome Chinese firms to set up business in Laos.It will be helpful for two countries' politics stability,economy development,technology progress and culture communication when China cooperate with Laos on economic trade.The people of the two countries are also hospitable,friendly and like each other's trade and interaction very much.In the past five years,China and Laos have been relatively harmonious on trade interaction.Under the background of “the Belt and Road”,Laos government hope to accelerate the reform and opening up of the country,and promote its cooperation with China even all countries over world so that they can enjoy more economic growth and social progress.This paper analyzes the history,existing situation of trade contacts between China and Laos,there are both successful experiences and lessons of failure.This article summarizes its successful experience specifically,avoiding zero-sum games and maintaining the level of cooperation in the intermediate state;meeting the needs of both sides of the trade and restricting the actions of all parties;increasing the added value of trade products and reducing the trade deficit;complementary resource endowments,equipment technology funds are mutually beneficial.The lesson from the failure of economic and trade exchanges between China and Laos is that Laos has a single industrial structure and backward infrastructure technology;there are cultural differences between China and Laos,and Lao workers reject foreign investment;some trade agreement clauses increase the risk of investment for Chinese companies;consumption of raw materials too much,caused the destruction of the ecological environment.At present,there are some problems and challenges in the economic and trade cooperation between China and Laos.For example,some regulations of the ASEAN Free Trade Area restrict the economic and trade cooperation between Laos and China,which intensifies the risk of Chinese companies investing in Laos.The laws and regulations on economic and trade cooperation between China and Laos are not strict or standardized.These problems make Chinese enterprises become sincere and fearful when investing in factories.In order to solve these problems,this paper suggest Laos to cultivate professional talents,polish relevant laws and regulations based on maintaining the multilateral trading system,to create a better business environment,make bilateral trade more market-oriented,legalized,and internationalized,and lay a good foundation for a higher level of liberalized and facilitated trade and investment,to improve government administrative efficiency to promote trade development,economic growth,make social progress.