Indos
PDF THINK TANK: ANALYST
- Joined
- Jul 25, 2013
- Messages
- 23,466
- Reaction score
- 24
- Country
- Location
China may be going the slow and steady route, build what you can now (because costs go up with time), and build those things you must in 20 years when the other party is ready.
The Thai railway does seem more beneficial to China. Is China offering terms that mitigate the trade deficit or offer the railway on easier terms?
China influence in countries such as Thailand, Cambodia, Myanmar, Laos are big since they are very close to each other.
I dont know whether Thai or Vietnam are able to lower their trade deficit with China, it seems it is growing year by year.
Only Singapore and Malaysia that benefits alot with trade with China, so both of them will not have any hesitancy to have rail connection to China as they produce high value added products like semi-conductors that are needed by China industries.
For Indonesia, we could be regarded as few countries that is also benefited with trade with China despite still experience small trade deficit, but the China investment is large in Indonesia in our important sector (metal down streaming). The trade with China is much more efficient done using sea transport. Basically we are lucky to be at the right distant with China, close enought to be part of value chain for products that are not produced in Indonesia but not too close that make our own local industry still can have comparative advantage to absorb our own local domestic demand.
Being at the center of both mammoth like India and China is also benefiting Indonesia. We have big trade surplus with India.