Thai looks to China to counter economic slowdown
Thai Prime Minister Abhisit Vejjajiva raised the prospect of Chinese involvement in his nation’s stimulus spending package using a visit to urge a return of tourists and investors after political turmoil. Nearing the end of his four day visit to China, the prime minister said that the Chinese were interested in his $42 Billion package.
Leading a delegation of more than 100 officials and business people to China, the Prime Minister announced deals worth more than $1 Billion. The agreements involve exports of Thai rice, Tapioca, Fruits and jewelry. These are part of the Thai commerce ministry efforts to expand business networks between the two countries to counter global economic slowdown.
Thailand’s economy has seen exports fall by more than 20% a month over the last one year and tourism has slumped.
The Foreign Trade Department has also agreed to sell 1 million tonnes of tapioca chips to Cofco Limited, China’s largest edible oil and food importer and exporter and a leading food manufacturer. The fruit firm Patcharavipa Sweet Tamarind and China’s Tai Na International Group have also reached a deal on setting up a distribution network for 15,000 tonnes of fresh fruit a year worth 1 billion baht.
In addition, the Thai Gem & Jewelry Traders Association and the Gold Traders Association have signed an agreement to expand co-operation in gems and jewellery between the two countries. Business matchmaking for more than 100 companies took place at the event.