China Establishes First Southeast Asian Air Base in Laos

Satellite imagery has revealed the presence of attack jets at a newly established Chinese military facility in Ban Keun, Laos. This development marks Beijing's first air force foothold in mainland Southeast Asia, raising concerns among neighboring nations. The facility, which opened last week, reportedly houses eight light attack aircraft and numerous military vehicles.

While China asserts that the "support and training centre" is not directed at any third party, the strategic implications of this expansion are being closely monitored. The adjacent runway, currently accommodating smaller aircraft, is under scrutiny for potential future upgrades that could support larger military planes, further extending China's regional reach. This move comes as the yield gap between Chinese and US 10-year bonds widens to a record high, with Chinese yields near 2% and US yields exceeding 5%.