Is Laos the Next Victim of China's Debt Trap Diplomacy?

Wednesday, 10 July 2024, 11:12

Laos is grappling with a significant debt crisis, with over 75% of its total debt owed to China amounting to $10.5 Billion. The country experienced a drastic increase in debt repayments reaching close to a billion dollars last year. In a concerning move, Laos has ceded control of its electricity infrastructure to China amidst this unsustainable debt burden. The question arises whether Laos is susceptible to succumbing to China's debt trap diplomacy, raising concerns about the nation's financial stability and sovereignty in the face of mounting debt obligations.
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Is Laos the Next Victim of China's Debt Trap Diplomacy?

Laos Debt Crisis

Laos is facing a severe financial crisis, as highlighted by its significant debt owed predominantly to China.

Debt Burden

Over 75% of Laos' total debt amounting to $10.5 Billion is owed to China, creating a challenging financial situation.

Debt Repayments

Recent data indicates that Laos' debt repayments spiked to approximately a billion dollars in the previous year, underscoring the magnitude of the financial strain.

Infrastructure Control

In a worrisome development, Laos has granted China control over some of its electricity infrastructure, intensifying concerns about the nation's economic autonomy.

Risk Assessment

The looming question pertains to whether Laos is on the brink of falling into China's debt trap, posing significant risks to its financial stability and independence.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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