I. Political Relations

China and Laos are friendly neighbors linked with mountains and waters, and the people of the two countries have co-existed in peace and harmony since the ancient times. On April 25, 1961, China and Laos established diplomatic relations and have maintained neighborly and friendly relations ever since. Between the late 1970s and mid 1980s, their relations suffered twists and turns. In 1989, however, Sino-Laotian relations returned to the normal.

Over the last ten years and more, Sino-Laotian relations have seen comprehensive restoration and development and exchanges of visits between leaders of the two countries become frequent. President Jiang Zemin, Premier Li Peng and Chairman of the Standing Committee of the NPC Qiao Shi visited Laos respectively while President of Laos Kayson Phonvihane and Nouhak Phoumsavanh, Premier Khamtay Siphandone, and Boungnang Vornchith, President of the National Assembly Samane Vignaket and Central Chairman of the Nation-Building Front Sisavath Keobounphan visited China many times. The two countries have witnessed growing friendly contacts and cooperation in the political, economic, military, cultural and health fields, and maintained close coordination and cooperation in international and regional affairs. The Laotian Government abides by one-China position and supports the Chinese People in the peaceful unification cause of their motherland.

In November 2000, President Jiang Zemin paid a state visit to Laos. As it is the first visit to Laos by the president of China, it stands out as a milestone in the history of bilateral relations. During this visit, the Joint Statement on the bilateral cooperation was signed and issued, confirming the development of comprehensive cooperation between the two countries based on long-term stability, neighborliness and friendship and mutual trust.

II. Economic and Trade Relations

Over the recent years, China and Laos have seen sound development of their economic and trade relations. Documents on cooperation in trade, investment protection, tourism and automobile transport were signed respectively and the committee on bilateral economic, trade and technological cooperation was set up between the both sides. In 2000, Sino-Laotian trade volume reached US$ 40.84 million, up 28.8% from the previous year, and in 2001, it rose to US$ 61.87 million, up 51.4% from 2000.

Since 1900, Chinese companies started building plants in Laos with their investment. By the end of 2001, the contractual investment had totaled US$ 75 million, covering such areas as building materials, cultivation and aquiculture, and pharma ceutical production. On the other hand, they actively participated in labor and project contracting in Laos, with the contractual total exceeding US$ 0.5 billion.

Following are the aid projects built by China in Laos: ground station for receiving satellite TV programmes, hydropower station by Namgao River power transmission project and Cultural Palace of Laos. The project under construction now is the 2nd phase of Vangvieng Cement Plant and Langprabang Hospital and other projects will come next.

III. Exchanges and Cooperation in Other Areas

There has been good cooperation between the foreign ministries of the two countries, the Chinese and Laotian foreign ministers respectively visited the other country. Laos opened its consulate-general in Kunming. In 1999, the two countries reached an agreement on Laos opening another consulate-general in Hong Kong.

Military relations between China and Laos have developed very well. China's military leaders Chi Haotian, Zhang Wannian and Yu Yongbo visited Laos one after another while Laotian Vice-Premier cum Defence Minister Choummaly and other military leaders visited China many times.

Since 1989, China and Laos have signed agreements on cultural and press cooperation as well as memorandums of understanding on cooperation in education, health, broadcasting, film and TV. There were frequent exchanges of visits between performing artists, writers and journalists of the two countries. The two countries started to exchanged students and vocational trainees since 1990.

IV. Border Issue

China and Laos share a joint boundary of 500 kilometers long. In October 1991, the two countries signed the Sino-Laotian Boundary, Treaty on the Sino-Laotian Boundary System and Supplementary Protocol to the Treaty on the Sino-Laotian Boundary System. Having found a successful solution to their boundary dispute in a relatively short time through friendly consultations, the governments of the two countries have set an example for states to resolve boundary questions through peaceful talks. The Sino-Laotian boundary has become a peaceful, friendly and stable border.