The U.S. $6 billion railway, whose construction began in December 2016, is part of a longer rail line that will link China to mainland Southeast Asia under Chinese President Xi Jinping’s massive Belt and Road Initiative of infrastructure projects linking nations to China. The project has been touted as a boon for Laos, an impoverished, landlocked nation of 7 million people, because it is expected to lower the cost of exports and consumer goods, while boosting development and tourism.
China is Laos’ largest foreign investor and aid provider, and its second-largest trade partner after Thailand.