The New Chinese Silk Route (Part 2)
Although the previous part mentioned the construction of the Kunmingnam Railway Station as the starting point for the international high-speed line, this does not mean that major construction works are not underway elsewhere.
In Laos, groups of Chinese entrepreneurs are busy drilling hundreds of tunnels and building bridges to connect the other Asian countries. However, a bitter detail! Laos does not have the money to finance this 420-kilometer route, so China "borrows" it. If the repayment is not made, Beijing will step in to finance the first loan. The Lao collateral consists of agricultural land and mining concessions. Thus, Laos economically exports itself to China. In this way, Laos is becoming more and more like China.
Another important point is that the muddy rice fields of Laos must be made bomb-proof. During the Vietnam War in the last century, the Americans dropped more than two million tons of bombs on Laos, two-thirds of which failed to explode. The Chinese do not dare to start building in those places before the demining service has declared these areas bomb-free.
According to one of the entrepreneurs, eighty percent of business in Muang Xai is in Chinese hands. 'Laotians trade in cement and steel, but even the largest Laotian cement brand has a Chinese owner.' That's how Yang's watermark takes it too. Namtha sounds Laotian, the packaging looks Laotian, but Namtha is Chinese. Laos has no problem with this new "Chinese progress". For sixty years the French drained this country as a colony, then the Americans bombed everything to pieces. At least China is making progress.
These massive infrastructure projects are the backbone of China's ambitious economic and geopolitical agenda. China's President Xi Jinping is literally and figuratively building ties, creating new markets for the country's construction companies and executing his model of state development in a quest for deep economic connections and strong diplomatic relationships.
Among the many state leaders at the Beijing meeting on Sunday, Vladimir V. Putin was also invited.
The Western countries are suspicious of the Chinese OBOR activities, especially now that plans are being made to build railway lines from Budapest to Belgrade and to acquire a Chinese port in Greece.
Excellent this economic development of Laos thanks to aid. Is it somewhere else? Borrowing is being done all over the world to finance projects. Both in business and at and by the government. Perhaps the Dutch government debt is also financed by the Chinese government, which is fine. These mutual relations create a bond and prevent bilateral problems as people get to know each other better.
Really wonder if the laotian is better off with this.
Look at the money flows: China lends money to Laos, which returns the vast majority via Chinese companies, but the debt to China itself remains and must be repaid.
As far as I know Laos has received money to remove the bombs (and mines), but whether that was enough ….. and whether it was actually used for it ….
Laos gets something in return for opening up the hinterland to China, but is that in any proportion for the debt they are saddled with ????
In short, this is how you enslave your poor neighbor and the Laotian elite walk away with their pockets full.
Everywhere in Laos one sees the famous flag with the hammer and sickle flying in addition to the national flag. Hanged there by the Chinese, who do the work there with manpower, know-how, materials, and money. Of course not without self-interest... The Laaotians themselves are not interested in any of this. A nice country I hear you think, nice and relaxed and all that. But when you are in the supermarket
want to buy something you have to step over the staff who are sleeping on the floor or watching TV.
No wonder the country is being trampled under Chinese feet.
And if it continues like this, we will all work in the Netherlands until our death day in spring roll factories. Just kidding.
Big money rules everywhere in the world and, fortunately, it seems, also in Laos. I was almost worried, but luckily I don't have to. The Chinese have an interest in this and they should pay for it all themselves. What does this benefit the large part of the Laotian population? They barely have money for a train ticket. There will certainly be people who make a lot of money from this, but that is not where the money should go. Those people don't know how to spend it and certainly not share it with the less fortunate, so they buy the most senseless things for their own benefit. Fortunately, tomorrow the sun will rise again for everyone and there will be a new day with opportunities and decisions. We will read and see a lot more about these kinds of things, because the urge to accumulate more money and power for the target group has become an unprecedented priority.
Well, one could argue that making Laos "bomb-free" should be entirely the responsibility of the US. It is, after all, their weaponry. Sadly, that hasn't happened yet. Suppose a farmer in the US could not work his land safely! Then it was already cleared up!
If a bomb from WWII is found in the Netherlands, whether German or English, it will also be cleared away by the explosive disposal service and not by Germans or English, no, Slagerij van Kampen, this reasoning makes no sense, sorry.
Yet there are really foreign organizations active in clearing mines and the like in Cambodia and Laos. If only because of the fact that these kinds of countries cannot pay for these operations themselves, which every year costs farmers and especially children their lives or limbs. Moreover, the problem is incomparably bigger. Here in the Netherlands one sometimes finds a bomb, there it is littered with explosives. You often see warning signs everywhere. Especially considering that hardly anyone defends the Vietnam war anymore.
The “domino theory” turned out to be yet another mistake. The war a crime. More bombs were dropped in the region than in World War II. The US has the money that Laos and Cambodia, for example, do not have to clean up that mess.
I seem to remember that the USA militarily supported the South Vietnamese regime in its war with North Vietnam.
Laos and Cambodia were not at war with South Vietnam. The bombing of Laos and Cambodia was thus a serious violation of international law. South Vietnam/USA should have declared war on those countries first. Nevertheless, Laos and Cambodia should not have allowed the North Vietnamese forces to take refuge in their countries.
Since they illegally bombed those countries, it seems logical to me that they also clean up their mess.
The Chinese do not intend to stop at Laos, but the next step is of course Thailand.
One of the major problems of the Chinese is the food and water supply for their own population. In recent decades, people have turned their attention to African countries, but that is a long way off.
In 2006 Thaksin already guided Chinese people in Isan. The plan was to lease very large areas (preferably the entire Isan) to a Chinese company. The farmers would then become employees of this company and the rice yield would be sold to China, probably for a bargain price. Make no mistake. This idea still exists. And the Chinese don't just think long term, they also have a long breath (and money).
Let me paint a picture of the future:
1. the Isan farmers receive a monthly salary for a number of years (and they are of course very happy with that) but now have to pay for everything including their own rice, housing. Due to the increase in the number of Chinese, property prices are also rising, so that children are no longer able to buy a house. More and more they move away, leaving the Chinese behind;
2. Due to increasing economies of scale and efficiency (implemented by the Chinese), a large number of farmers are becoming unemployed. The Chinese don't care; not their problem;
3. Due to the low price of rice, much less tax is collected by the state. The Chinese don't care. Not their problem;
4. The declining HSL is being converted into a high-speed transport rail for rice to China.
5. The Isan is slowly becoming Chinese.
I believe that this expansionist drive is a direct result of the current American policy, which wants to make the Chinese pay more taxes!
America just wants to be “first” (according to Trump), despite a budget deficit and many unemployed.
Obtaining this position of power with major investments if necessary, producing as much as possible in our own country, despite a budget deficit, and if that succeeds, exports to "rich" Europe may get going, but certainly not for exports to the Far East and the Eastern Bloc China has held this economic position for centuries.
China chooses eggs for its money, is looking for cheaper sales areas closer to home in order to keep the gigantic Chinese economy going. the money paid for rising taxes now becomes a longer term investment.
If Laos cannot pay off its debts on time, they are screwed. And the Lao people will pay for it.
But yes, that applies to every country: if politics plunges the country into debt, it is the population who can pay. The first example that comes to mind is Greece.