China-Laos-Thai rail connectivity propels regional growth

Transportation connectivity between China, Thailand, and Laos is boosting regional development and tourism among the three countries.

The China-Laos Railway opened in December 2021, with its international passenger service beginning in April 2023, while the cross-border railway between Thailand and Laos opened for traffic this year, and the China-Thailand railway project is being constructed at high speed.

In July 2024, the Thailand-Laos cross-border passenger train service commenced trial operations, connecting Krung Thep Aphiwat Central Station in Bangkok with Khamsavath Railway Station in Vientiane, Laos.

This route enhances rail connectivity between Thailand and Laos while linking with the China-Laos Railway, connecting Kunming City in southwest China's Yunnan Province to Vientiane.

As the China-Thailand railway construction progresses, tourism among China, Laos and Thailand is expected to flourish.

Meanwhile, the 1,035-km China-Laos Railway is fostering closer ties between the two countries, enhancing personnel exchanges and cultural interactions, while significantly boosting bilateral trade.

Since its opening in December 2021, the railway has handled over 10 million tons of imported and exported goods valued at about 5.7 billion U.S. dollars in total, with varieties of goods expanding from the initial 500 to more than 3,000. The railway has also transported over 40 million cross-border passengers, providing affordable, convenient and comfortable experiences to travelers.

"The China-Laos Railway is a platform for youth to find jobs and provides employment opportunities for locals along the route. I hope more young Laotian people can join the development of the China-Laos Railway and be part of this big family," said a Laotian train driver on the railway.

Not only are people from China and Laos benefiting, but more travelers from around the world are also choosing this train for leisure trips, as the railway passes various tourist attractions.

"The greatest change is the convenience of transportation. From Luang Namtha, a province in northern Laos, it used to take me two days to get there. Now, it only takes three to four hours by train," said the head of a train crew.

"In China, people often say, 'To get rich, build roads.' We sometimes say, 'To get super rich, construct railways.' A high-standard transportation network greatly advances inland countries like ours. Convenient transportation facilitates other forms of transport, reducing costs for investment, trade, and tourism," said Saysana Sitthiphone, director-general of the Laos-China Cooperation Commission.

China-Laos-Thai rail connectivity propels regional growth

Los Angeles is grappling with rising costs and delays in its wildfire recovery process, as tariffs on construction materials imposed during the Trump administration compound the challenges.

The devastating wildfires recently destroyed over 17,000 homes and businesses, leaving communities urgently pushing forward with reconstruction.

The Trump administration has recently rolled out new tariffs on a wide range of construction materials, including steel and aluminum, from the main trading partners of the United States, such as Canada, Mexico, and China. This has significantly driven up costs, further complicating the recovery efforts

"As the city and county of Los Angeles move aggressively to rebuild the wildfire areas in Malibu, Pacific Palisades, and up in Altadena, to build those houses, we need softwood lumber, aluminum, and steel from Canada," said Gene Soroka, executive director of Port of Los Angeles.

While the tariffs aim to boost domestic production, the transition will take time. In the interim, the shortage of materials is creating ripple effects across the construction sector.

"We are still handling a lot of imported steel, despite the tariffs because there's not enough American manufacturing of steel right now. So, one of the unintended consequences that this has done the wrong way is you don't have enough steel. That impacts construction, that impacts economic growth across the board," said Weston Labar, chief strategy office of Waterfront Logistics.

According to the Associated General Contractors of America, housing costs could skyrocket by almost 50 percent, widening the gap between insurance payouts and actual rebuilding expenses. It may force many homeowners to delay or even abandon their reconstruction plans, prolonging the housing shortage in Los Angeles.

Tariffs are also driving up prices for other products, impacting recovery efforts.

"We need appliances from Mexico, furniture from China, and all of those prices are going up, whether anticipatory, or real as these imports are coming across our port complex. So, we've got to have some pretty detailed discussions about this because families who want to rebuild, businesses who want to get back into the office are going to be impacted by these tariffs one way or another," said Soroka.

As Los Angeles strives to recover, the economic uncertainty caused by tariffs presents a formidable obstacle.

Tariffs add strain to Los Angeles wildfire recovery efforts