Fleet-footed Thailand leading Asean race for deals with China

[webfact]

BURNING ISSUE
Fleet-footed Thailand leading Asean race for deals with China
Supalak Ganjanakhundee
The Nation

BANGKOK: -- Everybody in this region knows that Thailand - no matter which government is in power - wants to be the first among equals in engaging with China. Up to this point, every country has had to look forward to deals with China, but now Thailand is at the forefront.

The military-run government under General Prayut Chan-o-cha has done even more than the others to serve the Chinese role in Southeast Asia - since his May 22 coup steered Thailand away from the West's political and economic superpowers.

Prayut visited China on Monday only a day after Chinese Premier Li Keqiang left Bangkok at the end of the Greater Mekong Sub-region (GMS) summit on Saturday. The two governments signed six memoranda of understanding and agreements within only four days.

The first two pacts for cooperation on railway development and the purchase of Thai farm products signed were in Bangkok while Li was in town. The other four - on currency use, plus stock and water management - were signed in Beijing while Prayut was there.

Indeed, they could have signed all the documents in one visit by either party, but the two leaders wanted to show the international community the first two pacts were in the Thai interest while the latter four were for the Chinese. The overall deal is of mutual interest, which China must earn to get more.

The MoU on railway development was highlighted by both Prayut and Li during the GMS summit in Bangkok as a showcase for other Mekong countries. Thailand made the decision — the right one the Chinese would say — to choose Chinese technology and financial arrangements to complete the physical connection for transport in the region.

The Mekong countries under the Asian Development Bank-sponsored GMS have had an ambition for two decades for an entire regional rail network, ideally to link Southeast Asia - beginning from Singapore - with the southern Chinese city of Kunming.

Twenty years on, the dream has still not materialised. There are many missing rail links in the region. Laos has no rail lines while Cambodia has many rail sections that are broken or in poor order.

Laos has dealt with Beijing for a long time in the hope of a railway from its northern border with China to the capital Vientiane, eventually to connect across the Mekong River to Thailand. Given that economic activities in Laos are limited, a rail line in that portion may not be viable for investment. The Chinese demand to utilise land alongside the rails, made it hard for Laos to give a final decision.

Prime Minister Prayut told reporters after the GMS summit that the Thai-Chinese deal on rail development from Nong Khai to Bangkok and Map Ta Phut would convince Laos to decide to jump on the bandwagon of a Chinese train system.

Premier Li said Chinese standards, equipment and manufacturing capacity would be used to build the Thai railway, which would help China export its manufacturing capacity to the rest of the world.

Prayut has also helped fulfil a Chinese financial ambition to make the renminbi yuan a regional currency. During his visit to Beijing on Monday, Thai and Chinese central banks signed an extension of the Renminbi-Thai Baht Bilateral Swap Agreement (BSA) and an MoU to establish renminbi clearing arrangements in Thailand.

China has a BSA with many countries in this region, including Malaysia. The yuan clearing-house would facilitate access to and use of the Chinese currency for trade and investment in Thailand and the region. This will be more convenient as economic transactions increase, and if western currencies like the US dollar, fluctuate.

Within just one exchange visit, Prayut can fulfil Chinese roles in physical and financial connectivity. Li said he looked forward to more use of the Chinese yuan in trade and investment settlements, as well as more technology cooperation between the two countries.

During a bilateral meeting in Beijing, Li told Prayut he hoped the Thai government would support and facilitate Chinese participation in the exploitation of potassium resources in Thailand - a project which the Chinese leader is well aware is strongly opposed by local residents in Udon Thani.

Things will never come for free - so let's see who will pay more and get less.

Source: http://www.nationmultimedia.com/national/Fleet-footed-Thailand-leading-Asean-race-for-deals-30250551.html


-- The Nation 2014-12-24

[NeverSure]

I wonder how fast "fleet footed Thailand" can run in the opposite direction when the time comes.

[ExPratt]

The other Nations are not so desperate

[NongKhaiKid]

Just a thought but could other nations be thinking things through a little more rather than just rushing headlong into a cul de sac ?

Edited December 24, 2014 by NongKhaiKid

[tonbridgebrit]

Okay, I'ill say it.
"Thailand, the hub of the Chinese take-over of ASEAN" !!!

All this talk of ASEAN. Is Thailand going to be used by China as a 'Trojan Horse' to take over ASEAN ??

[NongKhaiKid]

Okay, I'ill say it.

"Thailand, the hub of the Chinese take-over of ASEAN" !!!

All this talk of ASEAN. Is Thailand going to be used by China as a 'Trojan Horse' to take over ASEAN ??

Worth more than just a thought especially with all the problems in the South China Sea etc.

Thailand might find themselves becoming a Chinese mouthpiece.

[ChrisY1]

China on the run to get the Yuan widely utilised in the region.......this appears to be a strong push by them to squeeze out the dominant USD.

We will have to wait and see how the US reacts.

Edited December 24, 2014 by ChrisY1

[Tatsujin]

Well, as I've mentioned previously in other threads, there's a major swing away from the US and other "western" nations and towards China in many areas including tourism. Time will tell how successful or beneficial this will be, but I have my own opinions, and none of them are very positive towards China and this direction Thailand is taking.

[canuckamuck]

Fools rush in.

[Mango Bob]

What could be more appropriate than a Red Flag with Yellow stars flying over Thailand.

Edited December 24, 2014 by Mango Bob

[Carrerakiss]

Thailand is hardly leading in terms of ASEAN deals with China. Singapore has many bilateral deals in place with the Chinese, and has done for twenty years or more. It takes time to learn how to deal with China! even Lee Kwan Yew the ex Singapore PM has said as much. Quite how Thailand has done in ten days, what took ethnically Chinese dominated Singapore, decades to do, only the Thais know.

And if Thailand says that Cambodias rail network is in poor repair, it must be dire indeed. The Thai network is simply desperate itself.

But I guess it can be said the government is doing something, at least THEY. say they are doing something. Good or not, we will see. A decent domestic railway network that could be used by ordinary Thai folk to get around the country, would rank higher on my list of priorities than a high speed link that misses out many Thai provinces and cities

[does]

Judging from reader responses, you'd think China is an imperialistic monster or some dreadful decease, not a country that lifted 400 million people out of poverty in one generation.

It reminds me of a recent article in Asia Times: 'The rising cult of China experts'

Here is the opening paragraph:

BEIJING - A couple of years ago I met a German man at Harvard who boasted about his political stipend, his up-coming talk in New York City, and how he worked hard on the liberalization of Tibet and the breaking-up of China. There are no human rights in China, he explained to me. I was impressed and reminded him that if he ever plotted this way against our German government he could be tried for treason. He left in contempt.

He isn't the only one. There is a cult of Western evangelists and self-righteous crusaders who are determined to dislodge non-Western nations and usurp their governments.

In China they act as if above the law. That's because they see the Chinese government as corrupt, non-elected, and communist, and thus illegitimate. So why care about what it says or stands for? Moreover, these evangelists believe Westerners can do whatever they want in China because America and the entire Western propaganda apparatus will bail them out should trouble arise....

http://www.atimes.com/atimes/China/CHIN-01-231014.html

Edited December 24, 2014 by does

[Bluespunk]

Don't know why, but somehow, can't get this image of lemmings out of my mind.

Just can't shake it, puzzler indeed.

Weird thing is, they've all got their long spoons.

Edited December 24, 2014 by Bluespunk

[BirdsandBooze]

With the country being owned and run by a Chinese Thai Elite with investments and connections in China this is no surprise. This privileged group know there is much money to be made quickly.

[JOC]

How can you be fleet footed when bending over in a 120 degree angle??

[Cake Monster]

With China flexing its muscles more, and more, over the SE Asia region, to jump into bed with them would be a very unwise decision indeed.

[nong38]

I wonder if things will turn out as Thailand thought or was there something they did not understand, when they were signing up. Of course it could all just be about rice.

[smileydude]

Nothing new here just geopolitics. Countries go to bed with whoever benefits them.

In this case unlike how the US uses the CIA covertly, the regime openly wanted to show others if you don't like our style of democracy we can find new friends but as the saying goes "when you jump on the tigers back its hard to get down."

Edited December 24, 2014 by smileydude

[yellowboat]

Was in China earlier this month at a small restaraunt. The table next to were 6 or 7 businessmen talking about opportunities in Cambodia; its potential and easy of doing business. It seems business in Thailand is taking a more state controlled route, even more so than that of China, where its neighbors are encouraging a more entrepreneurial direction.

[Prbkk]

...faustian...

[bangon04]

"The military-run government under General Prayut Chan-o-cha has done even more than the others to serve the Chinese"

sums it up....

[Roadman]

Gee...only six MOU's in four days. Better get fleetest of foot to start catching up with the Aussie Chinese MOU rate and to a lesser extent NZ.

Drove through down town Queen Street Auckland this afternoon and their proudly with their brand new banner proclaiming them as the first Chinese bank in NZ is ICBC. And note there are three Chinese Banks now with designs on downtown Auckland. Chinese Airlines about to commence direct flights into Auckland to cater for vastly increasing Chinese tourists. Get used to it right across the Asia Pacific region. The Chinese have the loot to spend and there are many countries aside from NZ, Australia and Thailand who are only to happy to help them spend it.

[outsider]

Thais? Fleet-footed? I thought they don't leave footprints... merely long, drawn-out lines on the sand?

[FangFerang]

I will wait and see how this plays out.

It could go ten different ways, simultaneously.

[Thai at Heart]

Did the Nation start hiring from the China daily?

[Thai at Heart]

Thailand is hardly leading in terms of ASEAN deals with China. Singapore has many bilateral deals in place with the Chinese, and has done for twenty years or more. It takes time to learn how to deal with China! even Lee Kwan Yew the ex Singapore PM has said as much. Quite how Thailand has done in ten days, what took ethnically Chinese dominated Singapore, decades to do, only the Thais know.

And if Thailand says that Cambodias rail network is in poor repair, it must be dire indeed. The Thai network is simply desperate itself.

But I guess it can be said the government is doing something, at least THEY. say they are doing something. Good or not, we will see. A decent domestic railway network that could be used by ordinary Thai folk to get around the country, would rank higher on my list of priorities than a high speed link that misses out many Thai provinces and cities

CP fixes everything not just for Thais but also the whole of SE Asia.

He is the broker for all major overseas Chinese, Thai or otherwise

[Oziex1]

Just a thought but could other nations be thinking things through a little more rather than just rushing headlong into a cul de sac ?

Nothing to consider really our Chinese friend give big money I go Switzerland I OK, forget Thailand.

Think for today not tomorrow.

[bikerbri]

Brings to mind that well known song.Fools rush in where wise men fear to tread.

[sgtsabai]

I forsee a circumstance where Thailand "reaps the whirlwind".

[IAMHERE]

At one time a railroad built in the USA got the land for one mile either side of the rail. How much land does China get from the rail they are building in Thailand? There are going to be some upset landowners in Isaan and elsewhere.