Debt-Saddled Laos Struggles to Tame Rampant Inflation

Since its launch on December 3, 2021, the China-Laos Railway has handled over 48.6 million passenger trips and 54 million tons of goods as of February 2025.
Passengers at the railway station in Laos' capital Vientiane that was financed and built by China. ANG CHHIN Sothy / AFP

By Thanaporn Promyamyai and Damon Wake

Suffocating under a mountain of debt to China, Laos is struggling to tame rampant inflation, with food prices rising so sharply that a growing number of households are resorting to foraging.

  • Get a daily email packed with the latest news and analysis from Africa, Asia, and across the Global South.
  • Read exclusive insights on the key trends shaping China’s relations across the Global South.
  • Full access to the News Feed that provides daily updates on Chinese engagement in the Global South.

China, Africa and the Global South... find out what’s happening.

Subscribe today for unlimited access.

OR

Already a subscriber? Log in Click Here to Learn More
by Agence France-Presse

Most Read

1
Developing Countries’ Debt Servicing Costs to China Are Significant, but Nowhere Near as Much as Other Creditors
2
Uncertainty Roils Minerals Markets
3 Chinese Scholars See Russia’s Venezuela Strategy as a Model of Hybrid Power Projection in the U.S.’ Backyard
4 From J-10C to Kaan? Indonesia’s Fighter Jet Deal With Turkey Shocks Chinese Military Fans
5 Chinese Military Fans Discuss Why Indonesia Bought Rafale Instead of J-10C
6
Indonesia Goes Nuclear, Taps China and Russia for Modular Reactors

You Might Like

Q&A: How Cambodia’s Chinese-backed Funan Techo Canal Risks Destabilizing the Lower Mekong Delta

In May 2023, the former prime minister of Cambodia – Hun Sen – led a cabinet meeting that gave the green light to the “Funan Techo Canal”, the first waterway system in Cambodia, which ...

As China Builds the Grid, Laos’s Power Ambitions Enter a New Phase

2026 marks a strategic turning point for Laos in its ambition to become the “Battery of Southeast Asia”, with two mega power transmission projects advancing this year. On the first day of January 2026, ...

China Faces a Critical Test in Kenya

Kenya’s difficulties in servicing its debts for the newly-built, Chinese-financed Standard Gauge Railway (SGR) is nearing a breaking point. Even before the COVID-19 outbreak, the railway failed to meet ...

Reframing the Chinese Debt Crisis in Africa

Many African civil society stakeholders worry that China is going to take advantage of the worsening economic crisis to seize their countries’ strategic assets. It doesn’t matter that there aren’t actually any precedents ...

What is The China-Global South Project?

Independent

The China-Global South Project is passionately independent, non-partisan and does not advocate for any country, company or culture.

News

A carefully curated selection of the day’s most important China-Global South stories. Updated 24 hours a day by human editors. No bots, no algorithms.

Analysis

Diverse, often unconventional insights from scholars, analysts, journalists and a variety of stakeholders in the China-Global South discourse.

Networking

A unique professional network of China-Africa scholars, analysts, journalists and other practioners from around the world.

More about CGSP