Strengthening ties between China and Laos

China and Laos are friendly neighbors sharing borders of mountains, lakes and rivers. They established diplomatic relations in 1961.

As Chinese Premier Wen Jiabao arrived in Laos on Saturday for an official state visit, Wan Duyan takes a look at Sino-Laos relations.

Over the past decade, relations between the two countries have strengthened, with frequent exchanges between leaders from both countries.

Chinese President Hu Jintao met with Laos's President Choummaly Sayasone in November 2006.

During their talks, President Hu Jintao made a five-point proposal to further develop Sino-Lao relations.

In August 2007, Lao Prime Minister Boua-sone Boupha-vanh paid an official state visit to Beijing. The two countries signed six deals, involving cooperation in such fields as food safety, loans and aviation.

Over recent years, China and Laos have seen sound development in economic and trade relations.

Deals on cooperation in trade, investment protection, tourism, and land transport have been signed.

In 2007, bilateral trade between China and Laos was worth 249 million US dollars, an increase of almost 14 percent from 2006.

China exported 164 million dollars worth of goods to Laos, and imported 85 million dollars worth of goods in 2007.

In the same year, China's trade surplus with Laos was 79 million US dollars, down a third from 2006.

With assistance and investments from China, Laos' export growth has maintained relatively steady growth.

The two countries say agriculture, forestry, resource development and infrastructure construction are priority sectors for expanding cooperation.