Economic deals expected to boost ties with China

Several agreements strengthen Sino - Thai economic ties will be signed when Chinese Premier Li Keqiang arrives in Bangkok today.
Li begins his three-day official visit with a meeting with Prime Minister Yingluck Shinawatra in his House Government .
One agreement will be signed by the Board of Investment and China Development Bank Corporation to promote direct investment by both countries . The terms of payment for the Chinese rail system with Thai farm products . Joint work will be set up to discuss this issue further.
Prasert Boonchaisuk Industry Ministry said yesterday that Yingluck and Li would witness the BOI - CDB signing ceremony.
Only a few Thai companies have made ​​their presence felt in China, such as Charoen pokphand Group , Bangkok Bank and Kasi Grain Bank. However, some Chinese companies have established operations in Thailand.
From 2007 to 2012 , Chinese investors with 188 projects worth Bt177.7 billion applied for tax privileges that boi is .
The first eight months of this year saw 28 Chinese investment projects worth Bt18 billion apply for incentives. China is now the largest source of foreign direct investment by Japan.
Transport Minister Chad chart Alternate Punt said after a meeting with the director of China's State Railways Administration, Lu Dongfu , he would today sign a memorandum of understanding that would consider allowing Thailand to repay China for part of the construction cost of a high - speed rail project with farm products , such as rice and rubber.
" The two sides will discuss the possibility of such a barter agreement. More still needs to be on the government to government level," he said.
China was particularly interested in the proposal to build a high - speed railway between Bangkok and the northeastern border of Nong Khai Province , which that line was connected by rail link between Kunming in southern China and Laos , he said.
"China has studied the feasibility of this route, but there must be careful consideration of the benefits to Thailand and law," he said.
After the agreement is signed , the committee chaired by the Chad chart being created to determine what type of Thai agricultural products should be used as payment. Members will include representatives from organizations such as Commerce and Agriculture ministries.
" Decisions will be any kind of farm produce should be used and what part of the train project would barter payment be , " he said. " We will select the conditions that benefit Thailand the most. "
If the investigation finds that the barter deal is irrelevant, the government will not opt for this choice , he said , adding that the agreement would not be binding.
A possibility is to barter Farm Produce with trains and related equipment for use in high - speed rail project . It has been estimated that the cost would account for 20-30 percent of the total , or about Bt140 billion, Bt210 billion .
Thailand has no problem with funding high - speed rail project, as it comes under transport mega projects to be funded with some Bt2 trillion to be borrowed by the Ministry of Finance , said Chad chart . "We have enough money to finance the project , " he said.
However, he added that it would be worth exploring whether construction could partially paid with agricultural products . Thailand has not selected any special calls to build the project , he said.
" All projects must be subject to the bid in accordance with international standards. "

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