China sets stage for Silk Road extension into southeast Asia

December 19, 2014 11:16 pm | Updated 11:16 pm IST - BEIJING:

China is setting the stage for linking southeast Asia with its New Silk Road initiative, through a railway corridor that would connect the country’s Yunan province with Thailand and Laos.

China’s visiting Prime Minister Li Keqiang is expected to sign an agreement with Thailand on setting up two strategic dual-track lines covering 734 km and 133 km. Once completed, these lines will connect Bangkok with Thailand’s Nong Khai and Rayong provinces. Mr. Li is in Thailand to participate in the meeting of leaders of Mekong River region countries — Cambodia, Laos, Myanmar, Thailand and Vietnam.

The new railway project “will offer a new channel for bilateral trade, and also help form a potentially-lucrative tourist route starting from China’s Yunnan province, to Laos’ Vientiane and Thailand’s Bangkok,” said Huang Bin of Thailand’s Kasikorn Research Center, as quoted by Xinhua.

Thailand’s Prime Minister Prayut Chan-o-cha has earlier said that the railway tie ups with Beijing were meant to amplify China’s Silk Road Economic Belt and the 21st Century Maritime Silk Road initiatives.

Chinese President Xi Jinping has been relentless in pushing for a Silk Road Economic Belt — a giant project that would connect Asia with Europe along the Eurasian corridor through rail, road, fiber optic highways and energy pipelines.

Analysts point out that the growing ties between China and Thailand are not accidental. Beijing is apparently cashing on the sourness that has developed between Thailand and West following a military coup on May 22.

The military takeover in Bangkok was apparently prompted by the death of 30 people in sporadic violence that encompassed protests against former Prime Minister Yingluck Shinawatra. Gen. Prayut is now expected to visit Beijing next week.

Chinese academics are pointing out that the infrastructure gaps in southeast Asia, which would be revealed during the conference, will highlight the potential of the Asian Infrastructure Investment Bank (AIIB), a China-sponsored initiative.

It is expected that participating countries in Bangkok will further pursue the scope of the AIIB in developing infrastructure in the region.

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