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China-Laos high-speed railway link meets fierce western opposition

China Laos High Speed RailwayAccording to Ming Pao’s exclusive report, Indochina has become an emerging hot spot for investment as Southeast Asian countries hope to establish an economic commonwealth by 2015.

In 2006, about 20 Asian countries signed an agreement on an Asian railway network. The ChinaLaos high-speed railway will be part of the network.

For China, the railway connection to Indochina will facilitate closer relations with Southeast Asia that will benefit both sides. Trade between them amounts to $370 billion, and is expected to rise to $500 billion by 2015.

Moreover, China signed a cooperation agreement with Laos and Thailand for the construction of a high-speed railway connecting China, Laos and Thailand, which is of great strategic significance for China. It will enable China to go to the Indian Ocean through Indochina without passing through the Strait of Malacca so that China can have access to resources in Middle East and Africa even if the Strait was blocked by the US.

Out of jealousy at China’s rise, the western media fiercely opposed China’s loan to the project of the railway linking Laos with China’s Kunming, alleging that the railway is detrimental to the environment due to the construction rubbish along the railway, and that the cost of borrowing is too huge.

In fact, China lends the loan at a low interest rate for a long term of 30 years and Laos is to repay the loan by its mineral and agricultural products.

The New York Times quotes an anonymous expert and advisor to UNDP as saying that the terms of the loan are too harsh, and will threaten Lao’s macroeconomic stability. It moreover quotes an anonymous Asian diplomat as alleging that both the Asian Development Bank and World Bank have expressed their worries over the project, and that the IMF has warned Laos that it must be prudent.

Well-known rating agency Moody, however, gives a positive comment, saying that it will be a win-win project.

For Laos, the railway is certainly a very important route to the sea as it has no coastline. Laos expects it will receive $95 million from railway transport in the first year while the net profit from the railway transport will amount to $16.39 billion in 50 years.

High officials in Laos government are mostly former members of Pathet Lao who fought against the US along with North Vietnam in the past. They all do not like the US. However, in order to restrain China, US Secretary of State Hilary Clinton visited Laos last July in an attempt to draw Laos to its side.

In fact, the Sino-Laos high-speed railway project has encountered impedance now. When Chinese Premier Wen Jiabao attended the Asian-European summit last November, he was unable to attend the ground-breaking ceremony for the railway scheduled then due to the delay caused by the impedance.

In contrast, the project of the high-speed railway linking Laos with Vietnam, that Malaysia’s Giant Consolidated invested $5 billion in, met little Western opposition. An agreement on it was entered into during the summit.

Source: Hong Kong’s Ming Pao

About chankaiyee2

Author of the book "Tiananmen's Tremendous Achievements" about how with the help of Tiananmen Protests, talented scholars with moral integrity seized power in the Party and state and brought prosperity to China. The second edition of the book will be published within a few days to mark the 25th anniversary of Tiananmen Protests All the parts in the first edition remain in the second edition with a few changes due to information available later and better understanding. There are also some changes for improvements of style. The new parts are Chapters 12-19 on events in China after the first edition was published: The fierce power struggle for succession between reformists and conservatives; Xi Jinping winning all elders’ support during his mysterious disappearance for 2 weeks in early September, 2012; and Xi Jinping Cyclone. Chan Kai Yee's new book: SPACE ERA STRATEGY: The Way China Beats The US An eye-opening book that tells the truth how the US is losing to China. The US is losing as it adopts the outdated strategy of Air-Sea Battle while China adopts the space era strategy to pursue integrated space and air capabilities: It is losing due to its diplomacy that has given rise to Russian-Chinese alliance. US outdated strategy has enabled China to catch up and surpass the US in key weapons: Hypersonic weapons (HGV) that Pentagon regards as the weapon that will dominate the world in the future. Aerospaceplane in China’s development of space-air bomber that can engage enemy anywhere in the world within an hour and destroy an entire aircraft carrier battle group within minutes. Anti-satellite (ASAT) weapons, anti-ASAT weapons, stealth aircrafts, drones, AEW&C, etc. The book gives detailed descriptions of China’s weapon development based on information mainly from Chinese sources that the author monitors closely. U.S. Must Not Be Beaten by China! China is not a democracy. Its political system cannot prevent the emergence of a despotic leader or stop such a leader when he begins to bring disasters to people. A few decades ago, Mao Zedong, the worst tyrant in world history did emerge and bring disasters to Chinese people. He wanted to fight a nuclear war to replace capitalism with communism but could not bring nuclear holocaust to world people as China was too weak and poor at that time. If a despot like Mao Zedong emerges when China has surpassed the US in military strength, world people will suffer the misery experienced by Chinese people in Mao era. China surpassing the US in GDP is not something to worry about as China has the heavy burden to satisfy its huge population, but China surpassing the US in military strength will be world people’s greatest concern if China remains an autocracy. US people are of much better quality than Chinese people. What they lack is a wise leader to adopt the correct strategy and diplomacy and the creative ways to use its resources in developing its military capabilities. I hope that with the emergence of a great leader, the US can put an end to its decline and remain number one in the world. China, US, space era strategy, air-sea battle, space-air bomber, arms race, weapon development, chan kai yee


2 thoughts on “China-Laos high-speed railway link meets fierce western opposition

  1. Reblogged this on Living in Phnom Penh.


    Posted by nomade51 | January 15, 2013, 9:37 pm
  2. Reblogged this on CHINDIA ALERT: Hidden Dragon, Crouching Tiger and commented:
    Another spur to the New Orient Express.

    See also:


    Posted by keeper @ chindia-alert | January 15, 2013, 10:15 pm

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