China & Thailand solidify rice for high speed train exchange

Rice fields near Chiang Mai, Thailand. Campos ...

Rice fields near Chiang Mai, Thailand. Campos de arroz cerca de Chiang Mai, Tailandia. (Photo credit: Wikipedia)

Several Thai press, such as Thai Rath, Thailand’s most powerful newspaper, reports Thailand and China have solidify their agreement, to exchange Thai rice with an MOU, at about 1 million tons a year, with China helping Thailand builds its High Speed train. Yingluck is greatly under pressure, over her rice subsidy scheme, as as leaving Thailand with a great deal in the amount of rice stock. While globally, there are many subsidy, and normally such stock of agricultural supply is kept secret, in Thailand, there have been much speculation, on the amount of rice stock Thailand is holding. This and other attack on the Yingluck’s rice scheme, based mostly on opinions and speculation, have greatly hurt the market for Thai rice globally. On infrastructure, after decades of little investment, the Yingluck government is attempting to invest massively on transportation modes, such as high speed train, positioning Thailand as the cross-road of ASEAN. Critics, says the spending, will hurt Thailand’s credit rating profile, as public debt to GDP increases, over time, to about 50% of GDP. However, most Thai economic thinkers back Yingluck’s infrastructure spending. On geo-politics, Thailand and China continues to solidify their relationship.


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