BANGKOK, Dec. 20 – Visiting Chinese Premier Li Keqiang said here Friday that China and Thailand have agreed to kickstart mutually beneficial cooperation on agro-product trade and railway.
China eyes deeper cooperation with Thailand and hopes for a more balanced bilateral trade and economic relationship, Li told reporters after meeting with Thai Prime Minister Prayut Chan-o-cha.
The two governments signed a memorandum of understanding on farm produce trade cooperation. China, Li said, has agreed to double its purchase on the basis of the volume the two sides agreed upon last year.
China expects the new initiative to empower both China and Thailand to resist risks of international market fluctuations and help improve the livelihood of Thai farmers, he said.
“Only China has such a big market and a huge purchasing power which could consume the big agricultural production of rice, rubber and others of Thailand,” said Li.
In addition, the two governments also inked a memorandum of understanding on railway cooperation.
Li said the Chinese and Thai governments have agreed to build Thailand’s first standard-gauge railway lines with a total length of more than 800 km, which has been approved by the National Legislative Assembly of Thailand.
The agreement allows China to invest in two dual-track rail lines in Thailand that will span 734 km and 133 km respectively and connect northeast Thailand’s Nong Khai province, Bangkok and eastern Rayong province.
The project is estimated to cost some 10.6 billion U.S. dollars.
“This is the expansion, extension and further confirmation of the previous agreement that the Chinese and Thai governments reached last year,” said Li.
The Chinese premier said he hopes that the two sides will speed up preparation for the railway project and lay a solid basis for the beginning of construction at an early date.