Thailand, China sign massive Rail, Rice, Rubber deals!

[Shotgunner51]

UPDATE 1-Thailand draws nearer to China with rail, rice and rubber deals| Reuters

December 4, 2015

Planned joint venture projects will strengthen bilateral relations.

BANGKOK: China will sign agreements to build a railway in Thailand and buy some of its rice and rubber, senior Thai government officials said on Wednesday.

The agreements could help boost the pedestrian growth rate of Southeast Asia’s second-largest economy and are the latest sign of strengthening relations between the two nations since a 2014 coup in Thailand.

China has been supportive of the Thai military government, in contrast to allies such as the United States who have sought to distance themselves from the generals who seized power.

Thailand will agree to a memorandum-of-understanding (MoU) with China to build a nearly 900-km (560-mile) railway from the Thai-Lao border to Bangkok, the officials said.

Thailand and China are planning to establish a joint venture company to undertake the project.

The two will also sign deals for China to buy 1 million tonnes of white and jasmine rice, and 200,000 tonnes of rubber from Thailand, Commerce Minister Apiradi Tantraporn said.

The rice and rubber will be sold at market price, and be delivered next year, she said.

There had been some late issues over the rubber deal as China had asked for changes in the terms, said Transport Minister Arkhom Termpittayapaisith. This would not impact the signings, he added.

The railway has been mooted for years. There is still no agreement on the price of financing of the project. Thailand has estimated it will cost 369 billion baht ($10.31 billion), while China puts the price at 468 billion baht.

China has offered to finance the project with a loan with 2.5 percent interest but Thailand wants 2 percent, Arkhom said. Thailand may seek to borrow from domestic markets if it fails to strike the deal with China, Arkhom said.

China has ambitious infrastructure plans for the region and plans to build rail links from Kunming in southwest China through Laos to Thailand.

 

[TaiShang]

News Analysis: Thailand-China railway cooperation a boon for both | GlobalPost

BEIJING, Dec. 4 (Xinhua) -- A Thailand-China railway project, on which the two countries signed an intergovernmental framework document Thursday, will not only benefit Chinese rail companies but also bolster prosperity and stability in Thailand.

The two nations will jointly build an 867-kilometer dual-track railway in Thailand, with 1.435-meter standard gauge and trains operating at top speeds of 160-180 kilometers per hour, according to the document.

As consensus was built on this project of strategic importance for China-Thailand relations, people of both countries should avoid being misled by some viewpoints that describe China as the bigger winner in the deal.

While it's true that the project will significantly increase Chinese rail firms' market influence in Southeast Asia, those who think Thailand will benefit less are short-sighted.

Poor railways in Thailand have proved insufficient in supporting economic growth in the country's remote and less developed areas, like the northeast where agriculture is a pillar industry.

By connecting northeast Thailand's Nong Khai province, the capital city Bangkok and the eastern Rayong province, the railway will play a key role in boosting trade and resource flow within the country, promoting balanced development and alleviating the wealth gap that has fueled political turmoil in Thailand.

As part of planned rail lines linking southern China, the Laos and Thailand, the project will also facilitate Thailand's farm produce exports, notably rice and rubber, to China.

China is Thailand's largest export market and trade partner. With the new railway to make transport more convenient, bilateral trade as well as Chinese investment in Thailand is expected to surge.

By allowing tourists to get on and off trains at more destinations in Thailand, the railway will also boost tourism in Thailand, another pillar industry of the country. In particular, it will rapidly increase the number of Chinese tourists, who accounted for 20 percent, the largest share, of all foreign travelers to Thailand last year.

As its economic growth hit its lowest rate in three years in 2014, partly due to cheaper and fewer farm produce exports, Thailand has a lot to gain from the project.

The construction of a regional infrastructure network has been the common wish of both China and Thailand.

As former Thai Prime Minister Anand Panyarachun noted in an interview with Xinhua, railway development will definitely help Thailand, a country that is advantageously located in the middle of Southeast Asia and is becoming more and more a hub of manufacturing, logistics, distribution and training in the region.

With railway technology, China is a good partner for Thailand in the project and has demonstrated strong willingness to support Thailand in funding, technology sharing and personnel training.

China has announced it will consider providing loans for Thailand at a fixed interest rate and on conditions more favorable than what Thailand will be required if seeking credit of the same scale, duration and currency from the international financial market.

The Chinese side will also send groups of experts to train Thai technicians through both short-term and longer-term courses, which will cover a wide range of subjects such as rail tracks, repairing, system, train control and safety.

China will transfer its skills and experience in railway operation and management to the Thai side "without reservation," and consider engaging qualified local subcontractors and personnel in the project, Chinese ambassador to Thailand Ning Fukui said earlier this year.

China has long upheld values of equality and mutual benefit in international cooperation, and smooth progress on the long-anticipated railway is in the interests of both parties. So far, China has shown utmost sincerity in cooperating with Thailand on the project. There is no reason to doubt that it will continue to do so in future.

 

[AndrewJin]

Great news!

 

[cnleio]

Thailand rice is welcomed in China, sold not cheap in supermarket.

 

[Beast]

Thailand military need to tune totally towards China, buy China submarine, armour vehicle, helo, SAM defense , aircraft trainer and fighter jet. Western stuff is useless if sanction imposed.

 

[Place Of Space]

Thailand military need to tune totally towards China, buy China submarine, armour vehicle, helo, SAM defense , aircraft trainer and fighter jet. Western stuff is useless if sanction imposed.

Do China have SAM? That's America products.

 

[Shotgunner51]

Thailand rice is welcomed in China, sold not cheap in supermarket.

According to the announcements, China will import an extra 1 million tonnes of rice from Thailand, good news for Chinese consumers, I am a big fan for Jasmine rice! However the import is still small, for your reference: China produced 130.42 million tonnes of rice in 2014, and imported 2.58 million tonnes mostly from Thailand & Japan.

Also, I believe both should extend currency swap. The current swap agreement signed in 2011 was only RMB 70 billion (THB 320 billion). More swap, more trade!

 

[Kyle Sun]

good news bui do not like thailand rice

 

[Viet]

Thailand military need to tune totally towards China, buy China submarine, armour vehicle, helo, SAM defense , aircraft trainer and fighter jet. Western stuff is useless if sanction imposed.

you want to push thailand faster down the drain, don´t you?

why the siamese need subs when the gulf of thailand is not suitable for operating subs? the deepest part of the Thai Gulf is just 80 metres. sub will run aground. and other military stuffs you offer are mostly too expensive. if the siamese are worry of sea security, our subs can patrol the gulf for them. why do they need to buy chinese weapons? if they want a peaceful border to Laos and Cambodia, the thai just ask our people because we can influence the politics in Laos and Cambodia. it is much cheaper for them to work closer with Vietnam. as you chinese always love to say it: win-win.

 

[Beast]

you want to push thailand faster down the drain, don´t you?

why the siamese need subs when the gulf of thailand is not suitable for operating subs? the deepest part of the Thai Gulf is just 80 metres. sub will run aground. and other military stuffs you offer are mostly too expensive. if the siamese are worry of sea security, our subs can patrol the gulf for them. why do they need to buy chinese weapons? if they want a peaceful border to Laos and Cambodia, the thai just ask our people because we can influence the politics in Laos and Cambodia. it is much cheaper for them to work closer with Vietnam. as you chinese always love to say it: win-win.

Why VPN needs sub when PLAN has 60 submarine? We can do the patrol and protection for VPN.

I thought Hun sen claim anti-vietnamese campaign during last few ASEAN summit? It seems you have zero influence as you brag? Laos are very grateful to China after we have the abilities to provide satellite for them. This is something poor vietnam cant do for Laos.

 

[TheTruth]

you want to push thailand faster down the drain, don´t you?

why the siamese need subs when the gulf of thailand is not suitable for operating subs? the deepest part of the Thai Gulf is just 80 metres. sub will run aground. and other military stuffs you offer are mostly too expensive. if the siamese are worry of sea security, our subs can patrol the gulf for them. why do they need to buy chinese weapons? if they want a peaceful border to Laos and Cambodia, the thai just ask our people because we can influence the politics in Laos and Cambodia. it is much cheaper for them to work closer with Vietnam. as you chinese always love to say it: win-win.

Probably because the Thais think you're a bunch of untrustworthy snakes, and the Cambodians and Laotians probably think this too.

 

[Viet]

Why VPN needs sub when PLAN has 60 submarine? We can do the patrol and protection for VPN.

I thought Hun sen claim anti-vietnamese campaign during last few ASEAN summit? It seems you have zero influence as you brag? Laos are very grateful to China after we have the abilities to provide satellite for them. This is something poor vietnam cant do for Laos.

First, You failed to see the difference: Vietnam is a military power, while Thailand not. Second, it's not about rich and poor, but reasonable or not. Spending money buying heavy Chinese weapons with questionable quality isn't what the Siamese need. Against Vietnam, even with imported Chinese fancy toys, the Thai army has zero chance. Maybe they can hold on a week or two. No more.

To counter Laos, Cambodia or Burma, or domestic radical Islamists they need infantry weapons not submarines.

Probably because the Thais think you're a bunch of untrustworthy snakes, and the Cambodians and Laotians probably think this too.

No way. Laos and Cambodia hate the Siamese, thus they rely on Vietnam protection.

 

[Nike]

First, You failed to see the difference: Vietnam is a military power, while Thailand not. Second, it's not about rich and poor, but reasonable or not. Spending money buying heavy Chinese weapons with questionable quality isn't what the Siamese need. Against Vietnam, even with imported Chinese fancy toys, the Thai army has zero chance. Maybe they can hold on a week or two. No more.

To counter Laos, Cambodia or Burma, or domestic radical Islamists they need infantry weapons not submarines.


No way. Laos and Cambodia hate the Siamese, thus they rely on Vietnam protection.

Why you need to worry about Thailand modernization?

Thailand surface forces is much more stronger than yours, their army and air force is much more integrated and stronger than yours pitiful forces. Let me rephrase it, When is the last time your army modernized your armored unit? when is the last time your army modernized your artillery units? Your army is just a bunch of T-54/T-55 of tin can, even you are still depends on BTR-60, unreliable Scuds missile in which had no effects without proper guidance system meh.

And one thing you must taking notes, even though they had close relation with China, Thailand is still US allied and your Vietnam is nothing.

 

[war&peace]

China is rocking... build good relations wherever possible.

 

[beijingwalker]

Vietnam is a military power? lol..hilarious