Southeast Asian nation stands to benefit as the world’s second and third biggest economies seek joint investments in other countriesJapan may also hope cooperation will help counter China’s growing influence in region
Thailand has emerged as a major beneficiary from improved relations between China and Japan by providing opportunities for joint development initiatives to offset the problems caused by increasingly aggressive US trade policies.
Observers also noted that as well as providing opportunities for economic collaboration, the choice of Thailand allowed Japan to check China’s expanding influence over Southeast Asia.
Both countries have been under pressure to act to cut their trade surplus with America, prompting a renewed effort to put their differences aside.
A “Third-Party Market Cooperation Forum” in Beijing on Friday highlighted what form this may take as businesses signed a series of agreements on infrastructure initiatives in other countries.
Among the agreements reached was a deal by Japan’s International Cooperation Bank to establish a cooperation framework with China’s National Development Bank to provide joint loans when investing in infrastructure in third-country markets, according to Kyodo news agency.
Many of the deals focused on Thailand, including a project to promote smart city developments in Chonburi province involving Japan’s JFE Engineering and Chinese firms.
Chonburi – along with Chachoengsao and Rayong – is a major region for Thailand’s Eastern Economic Corridor project, a US$45 billion plan to develop the eastern seaboard.
The project includes a high-speed rail link to connect Bangkok’s two main airports Don Mueang and Suvarnabhumi with U-Tapao outside Pattaya as part of the plan to develop the area as a trade and investment hub,
Thailand has already approved legislation aimed at attracting more investment, providing tax breaks for investors in the economic corridor and allowing them to rent land for up to 99 years.
