The founding of the Lao People's Democratic Republic in 1975 isolated Laos from the outside world, leaving only Vietnam as a regional ally. The signature of the 25-year Lao-Vietnamese Treaty of Friendship and Cooperation confirmed this “special relationship” and left the country as a dependent client state of its larger neighbor. It also created tensions with China after the Sino-Vietnamese war of 1979. Laos also maintained close ties with the Soviet Union and the Eastern bloc countries. As remnants of this period, Laos still has diplomatic missions in Russia, Eastern Europe, Cuba, Mongolia and North Korea.
Relations with Thailand began to improve in 1988, after violent border clashes in 1984 and 1987, and relations with China were normalized in 1989. The collapse of communism in Eastern Europe and the fall of the Soviet Union led Laos to expand its relations with potential international donors like Australia, Japan, Germany, France and Sweden.
As a member of ASEAN (Association of South-East Asian Nations) since 1997, Laos as positive diplomatic relations with most of its members. It is still politically and ideological close to Vietnam and considers Myanmar as a “friendly country”. However, it is through Thailand that Laos opens up to the world, with now three Friendship Bridges linking the two countries over the Mekong river, and a fourth one planned. In 2004, Laos hosted the ASEAN summit for the first time and attended the inaugural East Asia Summit in 2005.
In spite of its minor demographic and economic importance, Laos a been trying to keep a fragile balancing act. Balancing Thailand's huge economic and cultural influence with its relationship with Vietnam; Vietnam's political influence by improving ties with China; and China's growing influence by expanding relations with other Asian powers like Japan, India or Australia.
After independence, the United States replaced France has the main supporter of the Royal Lao Government. After the communist takeover, relations with Washington deteriorated but, unlike in Vietnam, were never fully cut. Today Lao-US ties have grown, particularly due to the significant Lao diaspora in the United States, and trade relations were normalized in 2004.
France still exert some level of influence on its former dependency, especially in the area of culture and the arts. Usage of the French language and the sense of belonging to a larger francophone community are promoted by Laos' membership in the Organisation mondiale de la Francophonie.