China-Laos-Thailand railway hopes for prosperity and stability
The China-Laos-Thailand high-speed rail line is predicted to play an vital position in growing connectivity between the three international locations.
The line will additional cut back transport instances and prices from present ranges, a senior Thai researcher mentioned.
“Although the venture continues to be beneath development, as soon as accomplished it’s going to type a part of the essential infrastructure for worldwide commerce between the 2 international locations.
Especially for perishable items similar to agricultural merchandise and excessive value-added gadgets the place time financial savings and cost-effective transportation are key elements to enhance commerce and deepen provide chain integration. Research Center (OkayResearch).
At the APEC summit on Saturday, China and Thailand agreed to construct a extra steady, affluent and sustainable Sino-Thai neighborhood with a standard future.
Observers see it as an vital step that can take the already robust bilateral relationship to a brand new strategic degree.
According to Trirathanasirikul, the China-Laos high-speed rail line, which is able to start operations in December 2021, has already benefited Thailand.
WATCH: Thailand exports report 1,000 tonnes of rice to China
According to OkayResearch estimates, the railway has opened a brand new transport route that can cut back land transport prices by about 30 p.c and transport time by about 50 p.c.
Total commerce between Thailand and China through this route reached 11 billion Thai baht (297 million euros), or 5.3% of complete cross-border commerce between Thailand and China, based on knowledge from OkayResearch.
Chinese items price 9.4 billion Thai baht entered the Thai market, together with fertilizers, vehicles and medical gear.
At the identical time, 1.5 billion Thai baht price of Thai exports, together with fruit and a smaller quantity of pc and digital merchandise, reached China.
Chinese authorities have granted “inexperienced lanes” and transport routes to facilitate the export of agricultural merchandise and different perishable items from Thailand to China through the China-Laos high-speed rail line, Xi mentioned.
“We consider that when the China-Laos-Thailand high-speed rail line is accomplished, it’s going to additional cut back transportation prices and save transportation time by greater than 70 p.c,” Triratnasirikul mentioned.
Improved connectivity ensuing from the high-speed rail line might be achieved via deeper financial, commerce and funding cooperation between the 2 international locations.
Reflecting the strengthening of financial cooperation between Thailand and China, Chinese direct funding in Thailand elevated from $720 million in 2020 to $1.14 billion in 2021.
According to China Customs knowledge, bilateral commerce grew 33% year-on-year, reaching $131.18 billion in 2021.
Chinese electrical automotive producers similar to SAIC, Great Wall and BYD have determined to put money into constructing electrical automotive factories in Thailand and have chosen Thailand as their manufacturing hub in Southeast Asia.
“As the worldwide economic system faces a number of challenges similar to tighter financial insurance policies, excessive inflation and rising geopolitical tensions, we consider that enhancing financial cooperation between China and Thailand, in addition to strengthening commerce and funding cooperation amongst ASEAN members, helps the institution as nicely. China’s provide chain in ASEAN is predicted to spice up regional financial development,” he mentioned.
“Perhaps it’s going to function a buffer towards any unfavourable results of those challenges that we face, and maybe they may come.”