China inks deal to ramp up imports of Thai rice and rubber
Premier signs dealon agricultural products as Bangkok junta seeks to offset loss of diplomatic support from the European Union and the US
China will double the volume of its imports of agricultural produce from Thailand next year, expanding its purchases of rice and rubber.
The announcement yesterday by Premier Li Keqiang came after China agreed to buy 2 million tonnes of Thai rice under a memorandum of understanding between the two countries, signed on the sidelines of a regional summit in Bangkok.
"China will double its imports of Thai agricultural products next year, especially imports of rice and rubber," Li said in Bangkok, without elaborating.
Li's trip to the Thai capital comes as Thailand's junta seeks diplomatic support after their coup was given short-shrift by US and European allies.
One of the highlights of the visit is expected to be the signing of a memorandum of understanding that will pave the way for a joint venture to build two railways lines through Thailand.
The dual-track line is part of a 1,400km vision of linking China's southwestern hub city of Kunming with Asia's second-busiest port of Singapore.
The largest will cut 734km through Thailand, from northern Nong Khai - which borders Laos - to the vast, coastal industrial estate of Map Ta Phut, southeast of Bangkok.
"The railways are a very important issue," Thai government spokesman Yongyuth Mayalarp said. "This is fundamental and will reinforce our cooperation with China."
Construction on the lines will start next year and be completed by 2022, he added, without giving a projected cost.
As part of the Thailand trip, Li will also join regional leaders - including from Myanmar, Cambodia and Laos - for the Greater Mekong Subregion Summit, where megadams and hydroelectric power schemes will also be up for discussion, despite mounting concerns over the environmental and social impact.
But Li's visit will also be widely interpreted as an endorsement of Thailand's new military rulers, who grabbed power from the elected government in May.
Since the coup, Thailand has found itself out of favour with Western allies, including the US and European Union who have repeatedly called for a swift return to democracy.
The meeting with Li would show "the good relationship we have with China", Yongyuth said, while the presence of the other regional leaders, "reflects the fact that the situation is normal now in our country".
China has in recent months devoted diplomatic energy, as well as huge sums of money, to wooing Southeast Asia, where its reputation as a regional powerhouse is blighted by sea disputes and fears over its long-term intentions.
In November, Beijing pledged US$20 billion in soft loans and for infrastructure projects to the 10-members of the Association of Southeast Asian nations.
Experts say Beijing is determined to outmanoeuvre the US, which has embarked on a security "pivot" towards Asia, as well as bolster its trade routes - and access to resources.