China’s New $6B Railway in Laos: Massive Debt Trap or Megaproject Success? | WSJ Breaking Ground 

Before falling into the so-called Chinese debt trap, Laos and its people have been struggling in the abyss of extreme poverty for at least 50 years. This railway has brought them a glimmer of hope at least. The U.S. dropped over 2.5 million tons of bombs on Laos in nine years. Right now, 80 million American bombs remain unexploded in Laos. It is still killing at least 50 people a year. The U.S. might consider helping Laos pay for Chinese railroad construction so Laos doesn't owe us Chinese money. In this way, the Laotians are happy, the Chinese are happy, and the Americans are happy to have their sins mitigated. Everyone is happy, so why doesn't the United States do it? Laos has been the poorest country in the world for the last 50 years without a single railroad. Why haven't the Americans helped the Laotians build a railroad?

Let me summarize what this video is about: Third world countries only have the obligation to accept US bombings, but do not have the right to accept China's construction

China comes to Laos bringing money and talking about investment. USA comes to Laos bringing troops and talking about China

Sri Lanka foreign debt: China 8% India 10% Japan 13% IMF 15% Wall Street 54% Conclusion: China created a debt trap to Sri Lanka!

Not sure we can call this a “debt trap”. But for sure, it’s by far and far better than the bomb traps forcefully offered by some countries.

I bought a house 10 years ago and have been in a debt trap since😂

Laos borrowed about $1.5 billion to have its first highspeed railway, while US paid a record $213 billion in interest payments on the national debt in the last quarter of 2022 but still has 0 highspeed railway

After carpet bombing Laos, a non combatant nation in the Vietnam war, America had conveniently forgotten Laos until China started to re-build Laos, that was when Laos because a concern for America. For any country that wants American attention and care, get close to China. Otherwise, you’re irrelevant.

It is amazing that this chip doesn’t say only 10% of Sri Lanka debt belongs to China

WSJ forgot to mention, Chinese engineers had clear thousands of bombs to make this railway. Bombs dropped by US. Currently US govt is paying over $2 billion everyday in interest payments. So this railway is mere 3 days of interest payments in US.

I was backpacking in Laos two months ago and used the speedtrain. When I booked it, I did not know it was one of Chinas Infrastructure projects. But when we arrived at the train station in Luang Prabang it became clear right away. It was massive and reminded me of an airport terminal because I had to go through security and then wait at the gate. On the tracks were hundreds of cargo wagons with the label “China Railroad” (as shown in the video). The train itself was super modern and reminded me a bit of the Shinkanzen in Japan (not as fast though). I was headed to Vang Vieng and instead of 5 hours in a bus, it took the train only an hour to get there. The most amazing thing was that the train spent most of the time in tunnels and did not make one single curve. Just one straight line through all the hills and mountains. The price for the ticket was really fair in my opinion although it is still very expensive for the locals living there.

The only thing I know is that America bombed Laos while China is building the infrastructure Laos needs to become a land-linked nation

If Chinese loans are debt traps, IMF loans are economic colonization. Take that low interest rate, but privatize most if not all your profitable businesses for the West to buy at a ridiculously low price.

The WSJ has no business talking about Chinese "debt traps". It's ignored the abuses of the World Bank and IMF pretty continuously. *Those* are *real* debt-traps, from which many African and Central/South American Countries are still struggling.

The British commentator said it well. US can always offer an alternative if China's offer is so terrible

China gave us High Speed Railways, while Westerners always gave us lectures

If IMF/World Bank gives loan.. is it called debt trap?

I still remember visiting mines and bombs museums in Laos. It’s sad

When talking about debt trap, you guys should mention the high speed railway project HS2 in UK. That is really a gem. Its buget has bloasted into more than $100 billion and made no progress after years

Indonesia's HSR cost $7B, 143km long, took 7 years to be completed on time. California's HSR launched in 2008, cost jumps to $128B and isn't going to finish any time soon. Who got the better deal?

WSJ SHOULD TALK ABOUT IMF AND WORLD BANK DEBT TRAP WHICH IS THE REAL ONE SEE HOW THE POOR AFRICAN COUNTRIES ARE STRUGGLING

I'm an expat living in China but currently in Laos (weird but I will post a video as proof tomorrow). Every year I return I notice things significantly improve. Laos is a poor country that produces surprisingly little. Shopping in a supermarket you'll notice that 95% of the products are imported. A reason they make so little is because the land is mountainous and bad for crops but also because the land has been so heavily bombed by the Americans. Because of this many Lao people transport goods over very dangerous poorly maintained roads. I've seen locals show me pictures of corpses of truck drivers they knew who died trying to transport minerals or products over dusty poorly maintained roads. The train is a welcome relief for what used to be a 16 hour journey from the Chinese border to the capital Ventianne and brings much needed Chinese tourist dollars into a country that is very much neglected by foreign tourists. In the city I'm in now there are practically no western tourists but quite a few Chinese here who start businesses, employ locals, learn the local language and marry into the culture. Due to synergy some Lao also take advantage of their Chinese contacts to go do business in China. Lao people today just want to improve their lives and move on. I wish them and their country the best.

I have lived in Sri Lanka as well as Laos so I can answer these questions directly. It may be true that Laos has not seen a new vast industrial base due to this railway but for most locals its almost a miracle to get to their remote villages from the cities so fast, as well as facilitating the transport of goods. China and Laos must plan and work hard to get some more dividends like industry and jobs. As far as Sri Lanka is concerned we keep getting brainwashed by the Chinese debt trap lies. Sri Lanka's was a the third richest country in Asia after the WWII with established institutions, educated population and financial stability. All that was wasted away by incompetent and corrupt political class during the last 75 years. With no industrialization nor significant exports, has become a sick man next to bustling Asia. This is a historic failure which has nothing to do with loans from China. Just one example, Emirates Airlines was managing Sri Lankan Airlines successfully and profitably. In 2008 the Government bought out Emirates as it wanted a "National Airline". Since then it has accumulated losses of $1 billion. Almost all state enterprises are poorly managed and some have large losses. Within the last 15 years loans were taken from China to build road, ports, airports etc. Some if these projects has been extremely useful while others have been white elephants. Again, even with these, the responsibility lies with the local politicians. This is the big picture and on top of that we had economic and tourism shutdown due to covid as well as highly irresponsible decisions such as unwarranted tax cuts taken by the Government during and after covid. So why has WSJ not done it's research ? Why keep lying that Sri Lanka went bankrupt due to "Chinese debt trap" ? The total international and national public debt of Sri Lanka is about $83 billion, of which only $7.5 billion is owed to China.

What are some countries really good at: first, leaving countless 💣 in Southeastern Asia, second, blaming China for helping developing southeastern countries 😅

If westerners don't like Chinese loans, then let them offer an alternative

When it's Africa or Asia it is called a Chinese debt trap, but if the infrastructure is in Europe (Crotia new Chinese bridge, "Pelješac Bridge"), it is called an asset.

IMF is the real debt trap diplomacy. Just take a look at those who borrowed from the IMF during the 1997 Asian financial crash, Indonesia, Thailand, Philippines and other Asian countries are still feeling the effects today

This railroad "debt trap" is $1.5bn out of Laos' $17bn total debt as the chart shows. Why not talk about the rest $15.5bn and what made them not a trap?

8:24 If Laos has such a potential, why didn’t western countries come and invest until Chinese came and invested? The USA is do hypocritical. It doesn’t want to invest and maintain a good relationship with Global South until China made a deal with these countries.

It not only connects China to Laos it helps the people of Laos to connect with the world. It has more benefits that perceived dangers.

The reason there's hardly any EU or US involvement is that there is no oil or valuable assets to seize.

Lao is a poor country with no borders to the sea. That is a huge disadvantage for trade. But with this rail, they are able to access the sea ports from China. The belt and road initiative are looking to help poor countries like Lao where they are invisible to the West. China will gain from that as well. That's why it's a win-win cooperations. Sure, there are risks, no guarantee for success. But nothing in this life is guaranteed. This is about giving these poor people a chance of a lifetime when no other counties would give them. That's why all the poor countries, or we call them the global south, are looking up to China rather than the US.

The CIA referred to their covert war in Laos as “the largest paramilitary operations ever undertaken by the CIA”…The bombing campaign (1964-1973) dropped 2 million tons of ordnance on Laos, the most bombed country in the world.

Comparing with the money which spent in the Ukraine, it seems a tiny number and can really change people's life

I would welcome any infrastructure if I were from Laos. And wsj should interview someone born and raised in Laos. They are the "experts"

Its 2023 and people still don't seem to understand that development and progress MUST come at a cost, NOTHING IS FREE.

*Nikkei Asia,* already explained that the mega railway project that cost 6 billion dollars was mainly funded by China, with Laos only paying 1.8 billion. By estimation, both the passenger and cargo trains can make six round trips per day. High tourism and cargo traffic plus redevelopment of the surrounding areas in service and productivity will boost Laos' economy by 5% to 616 million per year. At the fastest, Laos can recoup their investment in three years' time. *So, what debt trap is the Wall Street Journal talking about?*

I remember being in Laos in 2019, been on a bus for 6 hours winding up and down these skinny dirt mountain roads. There was very little infrastructure, the few paved roads where small and covered in potholes then all of a sudden we turned a corner and and I saw a massive valley carved into the mountains, with a extremely robust rail line under construction. The scale was very big, but compared to everything else in Laos it seemed gigantic. It was very confusing seeing such a contrast in infrastructure quality, cool to find out that's what I was looking at.

Why is there no debt crisis when Japan builds railways in India, Thailand, and Vietnam? Could it be that Japan offers them completely free loans? In the eyes of Western countries, if Japan had built a railway in Indonesia, there would be no debt trap

The “debt-trap” theory is concocted by Brahma Chellaney, an Indian geopolitical strategist. The “debt-trap” theory is concocted by Indians, and popularized by Americans. They concoct this theory to demonize China, Chinese and BRI projects/loans. India, US, along with EU, fear losing their dominance and control over other countries which may result from these projects. Such fears are based on their selfish and geopolitical interests. However, people from all over the world, especially from developing countries have acknowledged the needs and the actual benefits of these projects/loans. They know from their first-hand experience that there is no debt-trap. Academics and researchers have reviewed these projects, and have debunked the debt-trap theory.

Better to remove all of your bombs in former French Indochina region first before interfering in their foreign policies.

Of course some guy named Ben Bland has to chime in from the debt trap angle. None of these idiots ever mentioned that the biggest function of this railroad, besides providing Laotians a means to travel within the country, is to connect China directly to the border of Thailand, where it's further connected to Malasia, Singapore, and so on. Laos has its main artery for commercial through traffic. Yet these reporters talk about carbon dioxide emissions in Laos while it's still remains one of the poorest nations in the region.

I could be wrong, but I thought most of the debts borrowed by third world countries came from the private sector (i.e., private banks from Europe and the U.S.). The interest rates from these banks were much higher than what the Chinese government was charging. Heck, even the World Bank and IMF were charging higher interest rates than the Chinese. So, why didn't the Wall Street Journal (for that matter, all the Western media) call those debts "debt traps?"

for a country that is landlock with no ports i don't know why its not a good idea to build railway connecting china i don't know why it is being called a debt trap

If it is a debt trap, US should provide aide to Laos so they could pay off the loan. It's only $6B.

I am not sure if this railway will ultimately be a success or lead to a debt trap. However, I can be certain that the US's Asia Railway proposal in India is more expensive, will take longer to build, and does not have the technical and experience of large-scale infrastructure railway construction. So~

A great project by China to improve Laos connectivity to China for trade and cultural exchange. Obviously this project is beneficial to Laos instead of bombings. God bless Loas n China.

This railroad is game changer for Laos to break out the landlock situation, Luckyly they are bordered with China who can supply product with affordable price.

China is helping developing countries to develop, while rich countries like the US complain and create obstacles.

It will be good to have a breakdown on the debts that Laos has and see who are the debtors by ranking. Tying debts directly to one project by China is hardly a convincing argument.

As always - critical tone of voice of WSJ. No event attempt to say that this is a great achievement

This new train system is welcomed by Laos and every train is packed with people; now they can travel or commute safely and much faster, and the trains are also helping Laos to export a lot of their products...eventfully the people of Laos can improve their living standard and be happy! How nice!!

As a Chinese, may I offer you a "big secret" (if not the biggest) of the so called Chinese economic miracle: some 30 years ago we borrowed "massive debt" from Japan, Korean and anywhere we could get, and invested the biggest portion of it to build roads and railway lines to improve the communication efficiency of the whole society. Although such infrastructure investment sank money like black holes, its effects turned to be like magic. Now it pays off enormously.

Better investment than Afghan and Iraq trillion dollar “project” 😂

You might as well say that all debt is a trap, including home mortgages and credit cards. And we are the worse with over $33 trillion dollars in debt.

From when did the US or the west ever care about the wellbeings of the Laos?

1. It is irony of monstrous scale for Americans to criticize others about incurring huge debts 2. See that $6B price tag? See that? The California High Speed Rail project so far costed $20B, started in 2015 and expected to finish in 2030 (with records of delays after delays and budget overuns) for section ONLY between Merced and Bakersfield, two inland sparsely populated cities. Any country's official, with IQ as low as 70, would ignore infrastructure building advices from the US.

I think the definition of Massive debt trap is a country who work on a railway project lazily and it hasn't been completed until now. for example in india and vietnam project 😜😝

In 2020, before Laos's high-speed rail opened, Laos had a trade surplus of US $570 million. After the opening of the high-speed railway in 2022, Laos had a trade surplus of US $1.39 billion. This is just the money made from trade. After the opening of the railway, it can also promote the development of tourism in Laos. Remember, the construction cost borne by Laos is only $1.8 billion. Without this railway, Laos would not be able to make more money and its economy would not be able to develop. The disgusting American media

I have a question. China is building railways, power stations, and all kinds of infrastructure that cannot be moved in its Asian neighbors. So what has the United States done for its American neighbors?

I love "How US media always focuses on china", China: please left us out 🙏🙏

Loas still has better debt ratio than the US

Meanwhile Japan charged Vietnam 72 billions to build a 1.5 times longer highspeed railway . almost 2 decades later and it's nowhere close to done . 72 billions ! Laos got a deal

"Debt trap" Lol I guess my house and my car are also considered debt traps.

The rise of Asia is so unstoppable.

So China should not lend money to Laos in order to make sure Laos remain in poverty forever?🤣unfortunately to mankind the largest debt trap is home mortgage,second is student loan, third is car loan.

The WSJ should also ask the question whether the generous G7 countries will even consider to provide an interest free loan to Laos to develop the much needed same railway to free Laos from.the evil debt trap?

Westerners will never understand why Laos and China border never change an inch until european come to this part of the world. Colonization and exploitation continue in Indochina until 1970s with the defeat of US and its same aspiration allies. Since the rise of China economically and militarily, western powers have hard time if they want to repeat their feats in this new century.

MACVSOG and the CIA did a ton of dirty work in Laos. If Americans want to know why the current world geopolitics are so messed up. Look up what your country did to other nations during the cold war period.

Lol, even Laos have better modern railway system than mighty USA😂, no wonder WSJ is furious about it.

With this new high speed trains many tourists are starting to discover Laos. I think this trains will bring in a lot of money for Laos. They are finally not alone.

The biggest feat of this project was removing the cluster bombs left behind by our friendly world democracy tour. And let's not forget that a lot of those debt came from the democracy tour and the subsequent rebuilding after the tour.

Even if it is a debt trap, the train route still benefits millions of people along the way.

after some research on the total Sri lankan debt (not surprised, mostly consist of IMF loans lol) i'm starting to see the bias so obvious that lead to negative perceptions on a country that inherently wanna help developing countries to grow.

The West accounts for the vast majority of Sri Lanka's debt, and this can actually be found (Central Bank of Sri Lanka report). The direct cause of Sri Lanka's debt crisis is the United States' cyclical indiscriminate issuance of U.S. dollars (harvesting the assets of other countries, this story has happened too many times). During this epidemic, the United States issued a large amount of currency and then raised interest rates, allowing U.S. dollar capital to flow back to the United States to earn interest. As a result, the currencies of various countries plummeted, and U.S. capital could purchase the assets of other countries at low prices. As for international loans, due to rising interest rates, the interest that needs to be repaid has doubled; at the same time, the domestic currency has fallen and is settled in US dollars (the currency that the country needs to pay has also increased significantly), so the debt has expanded rapidly. To sum up, Sri Lanka’s debt crisis is 100% caused by the United States (almost all countries with debt crises are similar to Sri Lanka). But the United States controls the weapon of public opinion and can turn any incident into black and white. The United States/Western smear campaign against China’s Belt and Road Initiative certainly hopes to reduce China’s influence. The rise of China and its leadership in the development of the Third World will undermine the dominance of the United States/West.

The US had given Lao millions of tons of bombs! China has given a railway and economic opportunity.

Should US consider more about its government debt ? Once and once again exceed ceiling ?

Rather than questioning on China's projects let the US build a high speed railway in a Southeast country where needed. Can they?

There is nothing better for Western nations, than to see this BRI project fail. I was in Vientiane in 2017. Western businesses controlled the tourism market 99%, with so-called "Eco Tourism" starting at $50USD a day. of which $1-$5 would go to the local operators. Helping locals to climb out of poverty and into exploited slavery. Laos could only do better for itself by distancing itself from all Western countries. If you haven't been, then you don't really know.....

Easy answer. For those unable and jealous inspite their inability it is a "debt trap" and will sell it as a debt trap. For the landlocked country that is benefiting tremendously from the ease the railway brings speed for it exports to the outside world it is a life-saver and a first step towards successful economic development. This WSJ article and its implications will tell you which side it falls into.

Commerce and development should be a human right in any system of government

you mean the dept trap agreement the US forced to Nepal?

I hope Chinese expand the belt and road into the US, I would love to have high speed rail in the US

Instead of just talking about debt trap, why don't the US & the West help Loas in the 1st place, so there won't be any debt trap?

With the presence of the Belt and Road Initiative from China to neighboring countries, the US should inquire with its neighbors whether they also wish to establish trade routes like that. The question of whether the Chinese BRI is a debt trap or not is best answered by the Latin American countries. Do they want the USA as it is now or more like China?

6b actually does sound like a bargain, arent we arguing over 100b network extention in the UK?

you are right about the environemental concerns but i'm still glad that they've built a railway instead of a 20 lane road for cars and trucks.

The American had dropped 270 million cluster bombs over Laos during the Vietnam war and there were 80 million unexploded bombs to be cleared meanwhile farmers and children suffered from lost of limbs or death everyday.....the irony is Laos and the US had not engaged at war !

I love it when the commenters are smarter than the video publisher lol

I hope it gets connected to Singapore before the debt issue consumes them. Trans-SEA railway is huge for tourism in the area, something I'd like to contribute to by going on holiday :)

All the US ever did for Laotian transport networks is carpet bombing them. I think they still consider much of the country mined (with cluster bombs).

I have read about this train project since it was newly constructed it was made by Laos government official, this is what they said, if the railway is making money they'll manage it and if not they will let China run the railway. either way they win, no more headache for the loan and since the railway is in Laos if China is successful in managing it they still will benefit from it

Better then bombing other's Homeland. Uncle Sam.😂😂😂

Yep. It's such a shame that improvished Laos has better train service than almighty USA.

Should Laos refuse such an opportunity and remain in economic poverty? The fears and anxiety that the west want poor nations to have and to remain poor is so disheartening. They refuse to help them to breakout of poverty by saying that they are helping them to avoid falling into debts. These rich nations want them to be low wage labourers to enrich themselves.

Any Laotian person would much rather have this China-built new railway infrastructure that brings all the modern economic benefits , regardless of any debts, than the years of US bombings during the Vietnam war and all the unexploded bombs that have been left behind! A Laotian knows from his history who is a genuine friend and who is not!

America: Spends $8 trillion in 20 years on fruitless wars in the middle-east. News-media: Silence 🤐 China: Spends a measly $1 trillion in 10 years on infrastructure projects around the world. News media: Deeeeebbbbbbbbtttttt-Trrrrraaaaaaaappppppp don't take it. Take our bombs instead 😅 Can't make this ish up 😂😂😂

Incredible project, hope it brings prosperity! 🚄

We are a freight forward based in china. we know our customers in Thailand could benefit from the Railway , The fruit exporters already reduce the shipping time with the Railway transport . Especially the high value fruit durian

Compare to the USA Death Trap in Ukraine...😂😂😂