Laos finds Chinese funding can come at a cost

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An employee at a local restaurant in Muangxay, a city in northern Laos, accepts yuan. According to the owner, 30% of customers use the Chinese currency. (Photo by Ken Kobayashi)

TAMAKI KYOZUKA, Nikkei staff writer

BOTEN, Laos -- Neon signs light up the night in Muangxay, an urban area in the northern province of Oudomxay, Laos. Many have the two Chinese characters that mean "hotel," one of numerous indications of China's influence in this zone about 80km south of the border. The province is home to a scattered population of some 270,000.

     At a restaurant recommended by a local Laotian, a large proportion of the clientele is Chinese. One suntanned Chinese man, who looked like a construction worker, wolfed down Laotian noodles and fried vegetables. He then took out a few 10 yuan ($1.63) notes from his pocket, handed it to the waitstaff and left. Hotels and supermarkets selling Chinese products also welcome payment in yuan.

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