10 Dec, 2010
Source: timesofindia
BEIJING: China will be connected by rail with its neighbours in South East Asia, including Singapore, Thailand and Laos, in the next three years.
This will add a new dimension to cooperation among ASEAN+1 countries and also influence India's relationship with them.
The network of rail lines connecting China's Kunming city with Singapore, Thailand, Myanmar, Cambodia , Vietnam and Malaysia is meant to give a boost to the creation of a Free Trade Area in the region.
The announcement was made by Laos deputy prime minister, Somsavat Lengsavad in Beijing on Thursday, who said theconstruction of a railway track connecting China with his country will begin early next year.
The two sides had inked an agreement last January for laying the track. The track may be used to run high-speed trains.
India has been trying to build relationships in South East Asia on the basis of its ability to provide trade opportunities and political support in international forums . But with the rail network enhancing Chinese influence in the region, New Delhi will face a new obstacle . The situation will be particularly difficult in Myanmar, where India and China are in severe competition to expand influence.
"We believe that this project will contribute significantly to the socio-economic development of Laos, as well as to the promotion of economic cooperation between ASEAN and China," Lengsavad said. The purpose is to support "the masterplan for ASEAN connectivity and the implementation of the ASEAN-China free trade area ," he said.
For China, the new network would facilitate expansion of its construction business in South East Asia. Chinese firms are involved in setting up hydropower projects in Laos besides building several infrastructure projects in Vietnam. Bilateral trade between China and Laos grew by more than 50% in 2009 to $752 million.
Source: timesofindia
BEIJING: China will be connected by rail with its neighbours in South East Asia, including Singapore, Thailand and Laos, in the next three years.
This will add a new dimension to cooperation among ASEAN+1 countries and also influence India's relationship with them.
The network of rail lines connecting China's Kunming city with Singapore, Thailand, Myanmar, Cambodia , Vietnam and Malaysia is meant to give a boost to the creation of a Free Trade Area in the region.
The announcement was made by Laos deputy prime minister, Somsavat Lengsavad in Beijing on Thursday, who said theconstruction of a railway track connecting China with his country will begin early next year.
The two sides had inked an agreement last January for laying the track. The track may be used to run high-speed trains.
India has been trying to build relationships in South East Asia on the basis of its ability to provide trade opportunities and political support in international forums . But with the rail network enhancing Chinese influence in the region, New Delhi will face a new obstacle . The situation will be particularly difficult in Myanmar, where India and China are in severe competition to expand influence.
"We believe that this project will contribute significantly to the socio-economic development of Laos, as well as to the promotion of economic cooperation between ASEAN and China," Lengsavad said. The purpose is to support "the masterplan for ASEAN connectivity and the implementation of the ASEAN-China free trade area ," he said.
For China, the new network would facilitate expansion of its construction business in South East Asia. Chinese firms are involved in setting up hydropower projects in Laos besides building several infrastructure projects in Vietnam. Bilateral trade between China and Laos grew by more than 50% in 2009 to $752 million.
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