Govt inks 70-billion-yuan swap deal with Beijing
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Chinese VP Xi on three-day visit; hails relations with Bangkok amid US moves in the region
Thailand has signed a 70-billion-yuan swap agreement with China to strengthen trade and investment between the two nations, the highlight of a three-day official visit by Chinese Vice President Xi Jinping seen as highly significant domestically and diplomatically.
Attending the signing with Prime Minister Yingluck Shinawatra yesterday, Xi hailed Thailand’s importance for regional peace and development. The swap agreement for 70 billion yuan, or about Bt320 billion, was signed by Bank of Thailand Governor Prasarn Trairatvorakul and Hu Xiaolian, deputy governor of the People’s Bank of China.
Apart from its economic importance, the mega-deal puts an international spotlight on Thailand as a strategically important country as far as Sino-US political and economic competition is concerned.
Xi, the man expected to take over as China’s top leader next year, arrived in Thailand yesterday on a three-day official visit to the Kingdom as the guest of the Thai government. Thai sources said Yingluck was paying personal attention to the details of his welcome, underlying the importance Thailand attaches to this visit.
The three-year currency-swap agreement was initially announced on Sunday. Thai exporters welcomed the agreement, saying it would help reduce costs and boost trade opportunities between Thailand and China amid slower economic growth in the United States and the European Union.
The measure will also help reduce the US dollar’s influence on the global monetary market and increase the weight of other foreign currencies, since the US economy remains fragile.
More Thai exporters will trade under the yuan regime in the future, as now more than 90 per cent of the country’s exports are transacted in US dollars, and that is costly for those who export to China and other Asian markets.
Experts see this as an attempt by Beijing to improve ties with its neighbours after Washington’s unveiling last month of a strategic shift towards Asia, according to The Wall Street Journal.
The Chinese government has also announced that it will send 100 tablet computers for Thai students to use in a free trial. It will also grant a special loan of US$400 million (Bt12.5 billion) to the Thai government.
Xi was greeted by Yingluck at Government House and held bilateral talks there, followed by a dinner hosted by the Thai prime minister, according to MCOT online.
The discussion covered a wide range of topics including Sino-Thai cooperation, regional and international cooperation, and other issues of mutual interest to both parties.
Having already been congratulated by Washington for her election triumph, Yingluck received sweet words from Beijing. “It has been proved that the development of China-Thailand ties has brought pragmatic benefits to the two peoples and made important contributions to the regional peace and development,” the Chinese vice president said.
“My visit is aimed at consolidating bilateral good-neighbourliness, enhancing strategic mutual trust and advancing pragmatic cooperation,” he said.
The two leaders witnessed the signing of memoranda of understanding on the development of a high-speed rail link between Bangkok and Chiang Mai, a railway system connecting Asean member countries, and a complete water-management system, including cooperation on flood- and drought-prevention measures.
The vice president is the most senior representative of the Chinese government to visit Thailand since the formation of Yingluck’s government. Xi is expected to visit rehabilitation centres and shelters in the aftermath of the recent flooding and will visit the Confucius Institute at Chulalongkorn University.
In a written statement delivered at the airport, Xi said China and Thailand were good neighbours, partners, friends and relatives who enjoyed a longstanding friendship, China Daily online reported.
Since the forging of diplomatic ties between China and Thailand 36 years ago, Sino-Thai relations have continued to develop in a healthy and stable manner under the aegis of the two countries’ top leaders and through the concerted efforts of the two peoples, Xi said.
The two sides have gradually expanded cooperation in such areas as politics, economy and culture, and maintained close coordination in regional and international issues, he said.
During his visit, Xi will also meet with Her Royal Highness Princess Maha Chakri Sirindhorn and the heads of the Privy Council and the National Assembly of Thailand.
Xi had just completed an official visit to Vietnam before coming to Thailand, the last stop on his Asian tour.
