China will sign agreements to build a railway in Thailand and buy some of its rice and rubber, senior Thai government officials said on Wednesday. The agreements could help boost the pedestrian growth rate of Southeast Asia's second-largest economy and are the latest sign of strengthening relations between the two nations since a 2014 coup in Thailand.
China has been supportive of the Thai military government, in contrast to allies such as the United States who have sought to distance themselves from the generals who seized power. Thailand will agree to a memorandum-of-understanding (MoU) with China to build a nearly 900-km (560-mile) railway from the Thai-Lao border to Bangkok, the officials said.
Thailand and China are planning to establish a joint venture company to undertake the project. The two will also sign deals for China to buy 1 million tonnes of white and jasmine rice, and 200,000 tonnes of rubber from Thailand, Commerce Minister Apiradi Tantraporn said. The rice and rubber will be sold at market price, and be delivered next year, she said. There had been some late issues over the rubber deal as China had asked for changes in the terms, said Transport Minister Arkhom Termpittayapaisith.