Why Thailand could be the big winner as China and Japan start to work together
- Southeast Asian nation stands to benefit as the world’s second and third biggest economies seek joint investments in other countries
- Japan may also hope cooperation will help counter China’s growing influence in region
Thailand has emerged as a major beneficiary from improved relations between China and Japan by providing opportunities for joint development initiatives to offset the problems caused by increasingly aggressive US trade policies.
Observers also noted that as well as providing opportunities for economic collaboration, the choice of Thailand allowed Japan to check China’s expanding influence over Southeast Asia.
Both countries have been under pressure to act to cut their trade surplus with America, prompting a renewed effort to put their differences aside.
A “Third-Party Market Cooperation Forum” in Beijing on Friday highlighted what form this may take as businesses signed a series of agreements on infrastructure initiatives in other countries.
Among the agreements reached was a deal by Japan Bank for International Cooperation to establish a cooperation framework with China Development Bank to provide joint loans when investing in infrastructure in third-country markets, according to Kyodo news agency.
Many of the deals focused on Thailand, including a project to promote smart city developments in Chonburi province involving Japan’s JFE Engineering and Chinese firms.