Research On The Trade Potential Between Chinaand Laos Under The Background Of The Belt And Road Initiative

Since the "Belt and Road" initiative was proposed,it has received a positive response from the Lao government.In order to strengthen trade cooperation between China and Laos,the two governments have formulated many targeted policies to effectively increase the scale and level of trade between the two countries.Based on this,this paper studies the trade status,influencing factors and trade potential of China and Laos in this context.First of all,based on relevant theoretical and practical data,this paper finds that since the "Belt and Road" initiative was proposed in 2013,the bilateral trade between China and Laos has accelerated and grown significantly faster than Vietnam,Thailand,Cambodia,Myanmar and other countries.In terms of trade structure,Laos’ exports to China are mainly raw materials,beverages and tobacco;Laos’ imports from China are mainly machinery and transport equipment,manufactured materials,chemicals and related products.Furthermore,this paper uses the Showy Comparative Advantage Index to measure the competitive advantages of Chinese and Lao products in the international market,and finds that Laos has a strong competitive advantage in the international market in food,beverages and tobacco,raw materials and mineral fuels,while China has a competitive advantage in materials and products,machinery and transportation equipment,furniture and clothing miscellaneous products.In addition,the study found that the two countries have strong trade complementarity in beverages and tobacco,raw materials,mineral fuels,chemicals and related products,manufactured materials,machinery and transportation equipment.Secondly,this paper establishes a trade gravitational model including seven independent variables,including China’s GDP,Laos’ GDP,and the number of Chinese ports,to analyze the specific factors affecting the total trade,import and export volume of China and Laos,as well as the trade volume by industry.The empirical results show that the economic development level,population of Laos,economic distance,geographical distance,and Chinese direct investment in Laos have different degrees of impact on the trade situation between China and Laos.Furthermore,the study found that the role of these influencing factors has increased significantly since the initiative was proposed.On this basis,the potential value of bilateral trade between China and Laos is calculated through the article,and it is found that the trade potential between the two countries has been further released,but there is still huge potential to be tapped.Finally,relevant countermeasures are proposed based on the previous analysis.First,the countermeasures for Laos’ domestic economic development are mainly to make full use of the "Belt and Road" initiative as an important platform and opportunity to strengthen cooperation with Chinese enterprises,introduce China’s advanced technology and management experience,improve Laos’ economic structure,and promote Laos’ economic development;Second,Laos’ countermeasures in opening up to the outside world,including actively developing diversified foreign trade models,further exploring international markets,and making full use of the "Belt and Road" initiative to comprehensively enhance the level of trade cooperation between China and Laos;The third is Laos’ countermeasures to attract Chinese direct investment,including enhancing Laos’ ability to attract Chinese investment,creating a good business environment,and realizing in-depth cooperation between China and Laos in infrastructure construction.