Since the Covid-19 outbreak in China at the end of last year, the Chinese government has banned its people from travelling outside the country, and many markets along the border between Laos and China are closed, according to Oudomxay provincial authorities.

Border trading in January and February between Laos and China, especially Oudomxay and Luang Namtha with neighbouring provinces of China, was quieter as a result, an anonymous official from the Oudomxay provincial Industry and Commerce Department told Vientiane Times on Thursday.

During those two months, all dry season agricultural products exported from Laos to China had to be stored in a warehouse at the border awaiting Chinese buyers.

Chinese markets have now reopened and are back to normal, but buyers are paying less for Lao products.

However, trade in other products between Laos and China continues to flow as normal, and authorities have not received any impact reports from exporters.

Laos’ main agricultural exports to China consist of rubber, maize, beans, Job’s tear, sugarcane, watermelons, bananas, cassava, sweet potato and other fruits. 

Experts say the Chinese market could absorb unlimited amounts of agricultural products from Laos if local farmers can supply them.

Bilateral trade value between Laos and China continues to increase every year as cooperation between the two governments deepens.     

China is now the biggest foreign investor in Laos and the country’s second-largest trading partner.

In 2016, the value of bilateral trade reached about US$1.9 billion and rose to US$2 billion in 2017. In 2018 it rose to US$2.88 billion and to US$3.22 billion last year, according to the Ministry of Industry and Commerce.

The increasing number of Chinese investors in Laos and cooperation projects by both governments has been a major reason for increased trade in recent years.

The China-Laos railway, the launch of Laos’ first satellite, hydropower development and other projects funded by China have helped to promote connectivity between the two nations.