Xuanye Ecological Agriculture： China-Laos Trade New Strategy under “the Belt and Road”

At 8:00p.m. of November 29, 2016, four ministers, Phet Phomphiphak, Minister of the Lao Prime Minister’s Office, Pholsena, Minister of Ministry of Industry and Trade, Supan Chomsey, Minister of Ministry of Planning and Investment, and Benzhan Sintafung, Minister of Ministry of Communications, accompanied Lao Prime Minister Thongloun to visit Hunan and the headquarter of Xuanye Company to inspect and guide work. Xu Guowu, Chairman of Hunan Xuanye Ecological Agriculture Development Co., Ltd., as one of the promoters of the construction of China-Laos “the Belt and Road” strategy, reported the work to them.

The relationship between China and Laos has gone through more than half a century, and history has witnessed a golden period for the two countries to mutually support each other and gain fruits from development. As an original ecological agricultural producer, Laos boasts rich natural resources and high-quality agricultural crops, reaching a good trade cooperation relationship with China.

Xuanye Lao rice becomes a key project of “the Belt and Road”

Under China’s “the Belt and Road” strategic blueprint, Xuanye Agricultural Ecological Development Company, as a key supporting enterprise in the Hunan Provincial People’s Government’s Strategic Action Plan for Linking“the Belt and Road”in Hunan Province (2015-2017), has been listed by the Lao Government as a key supporting Chinese-funded enterprise to be committed to promoting and developing China-Laos trade relations.

On October 27, 2015, the State General Administration of Quality Supervision, Inspection and Quarantine approved Laos to export rice to China, and the global announcement will be implemented from the date of promulgation. So far, Xuanye (Laos) Co., Ltd., a wholly-owned subsidiary of Hunan Xuanye Ecological Agriculture Development Co., Ltd., has been approved as the first batch of Lao rice importers and exporters designated by the official announcement, which has produced the first fruits on “the Belt and Road” - Xuanye Lao rice.

On January 21, 2016, with the joint efforts of Hunan Xuanye Ecological Agriculture Development Co., Ltd. and Laos, Lao rice was firstly launched in Hunan Jinxia Bonded Area, marking the official entry of Lao rice into the Chinese market. At the same time, on the 55th anniversary of the establishment of diplomatic relations between China and Laos and the Prime Minister’s visit to China, Lao leaders took Lao original rice as a gift sent to China by from Lao visiting delegation to show the friendship between the two countries.

Xuanye will push forward the new direction of China-Laos trade strategy

In order to further promote the establishment of the comprehensive strategic partnership between China and Laos, match the national development strategies of China and Laos, and quickly activate the market economic exchanges between China and Laos, Xuanye Ecological Agriculture Development Company is jointly planning with the Ministry of Agriculture and Forestry of Laos on the project of Lao Xuanye Ecological Agricultural Industrial Park - the largest agricultural products trading platform in China-Laos transportation hub in Southeast Asia.
The platform will become Lao national agricultural product reserve center and national grain depot. It is a new eco-agricultural industrial park integrating agricultural product breeding and processing, storage and logistics, trade display, scientific research and training by combining the advantages of its location and taking science and technology as the guide and ecological organic as the foundation which has a complete industrial chain of agricultural products.
The industrial park has a planned total land area of 1.053 million ㎡ (105.3 hectares) and a total construction area of 706 thousand㎡. It is divided into Savannakhet Industrial Park and Vientiane Industrial Park which are constructed at the same time, with a total investment expected to reach USD 460 million. The construction of this project is conducive to promoting the development of bilateral relations between China and Laos and meeting China’s import demand for organic ecological agricultural products. It is conducive to speeding up the “going global” of China’s production capacity, promoting talent exchange with countries along the line, deepening scientific and technological innovation cooperation, and building a community of interests. It is beneficial to tap the huge market demand potential of some relatively underdeveloped countries with abundant resources along the line, alleviate the prominent contradiction of current overcapacity and expand the market of our products.