Southeast Asia economics thread.

luminary

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with China​

Myanmar-China relations have often been described as ‘Pauk Phaw’—a fraternal relationship—owing to its political, economic, and diplomatic ties. The two countries share a 2129-km-long border and have deep historical and cultural ties. The relationship underwent a transformation post-1988 as the Western nations sanctioned Naypyidaw for human rights abuse and political instability due to the coup. It was during this time that Beijing became the largest trading partner of the Southeast Asian neighbour and to this date continues to be so.

While the dynamic relations between the two have witnessed several
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owing to the wariness of Myanmar authorities towards Chinese intent, China has become one of Myanmar’s largest trading partners. According to the Ministry of Commerce, Myanmar, the bilateral trade between
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in the financial year 2022-2023, reached up to US$2159.412 million.

Myanmar conducts cross-border trade with China through border posts situated in Muse, Lweje, Chinshwehaw, Kampaiti, and The other border points namely the Lweje border . While the other two border points the Kampaiti border earned trade

This has helped expand the economic scope within Myanmar. The Greater Mekong Subregion Economic Cooperation comprising China, Lao PDR, Cambodia, Thailand, Vietnam, and Myanmar also, presented a forum to pool in each other’s strengths and fortify cooperation in trade and investment.

Since Myanmar opened its door to foreign investment in 1988, the approved Chinese investment amounted to
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in Myanmar
till 2019. China has been investing consistently in physical infrastructure projects under the Belt and Road Initiative (BRI) through China-Myanmar Economic Corridor (CMEC).

The
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includes the Mee Ling Gyaing LNG terminal, a deep-sea port at Kyaukphyu, an industrial park, and a high-speed rail link between Kunming in China and Mandalay in Myanmar. Many of these projects are stated to be on track even post-coup.

Apart from connectivity routes, Chinese companies are now implementing many resource-sharing links whereby power projects including hydropower plants are being constructed in several locations. In October 2022, the
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power plant in the Kyaukphyu Special Economic Zone (SEZ)
was inaugurated.

Myanmar’s exports to China are primarily agricultural products, such as rice, beans, and sesame seeds.
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, agricultural exports accounted for 83 percent of Myanmar’s total exports to China. Myanmar is also exporting more minerals, such as jade and copper, to China. In contrast, China’s exports to Myanmar are primarily manufactured goods, such as machinery, electronics, and textiles.

The growing trade relationship between Myanmar and China has been driven by several factors. First, China’s demand for Myanmar’s natural resources has increased as its economy has grown. Myanmar is rich in natural resources such as oil, gas, timber, and minerals, and China has invested heavily in these sectors. Myanmar exports of pearls, precious stones, metals, and coins to China were
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.

Post-coup, some civilian movements are indignant with the perceived Chinese actions of continuing business as usual with the military as well as shielding it from international spectators. This has led to growing aggression over Chinese and led to 2 injured and
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in attacks in Yangon, Myanmar, with property losses reaching 240 million yuan ($36.89 million), the Chinese Embassy in Myanmar told the Global Times during 2021-2022.
 

Strangelove

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China will transfer high-speed railway tech to Thailand, engineers say​


  • Agreement in principle to pass on technology, skills and knowledge in 11 areas of railway construction, according to Chinese team
  • They are involved in negotiations on a line being built from Kunming to Bangkok and say Thailand wants ‘greater role in future cooperation’


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in Beijing Published: 9:00am, 15 May, 2023 Updated: 9:00am, 15 May, 2023


Workers construct a pillar as part of the Thai-Chinese high-speed railway project in Nakhon Ratchasima province in March. Photo: AFP

Workers construct a pillar as part of the Thai-Chinese high-speed railway project in Nakhon Ratchasima province in March. Photo: AFP

China has agreed to pass on some of its know-how to
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so that the Southeast Asian nation can develop its own high-speed railway network, according to Chinese engineers involved in the negotiations.

“As cooperation on the China-Thailand High-Speed Railway project deepens, Thailand’s desire to design and construct high-speed railways on its own has gradually become stronger. They hope to play a greater role in future cooperation,” the team led by Gao Rui wrote in Chinese journal Railway Standard Design last month.

“In response to Thailand’s repeated requests for technology transfer and teaching on China’s high-speed rail technology at joint committee meetings, China has agreed to pass on the technology to Thailand under the premise of not violating Chinese laws,” said Gao, a senior engineer with state-owned China Railway International Group and a member of its overseas engineering management and technical negotiations team.

Under Chinese law, companies and individuals must obtain government approval to export technologies that are deemed critical to national security or the country’s economic interests.

China has the world’s largest high-speed rail network, which was built in just 15 years. The network spans more than 40,000km (about 24,800 miles) – or long enough to circle the Earth. The country’s engineering experience, knowledge and technology could be useful to others wanting to build similar infrastructure rapidly and at a relatively low cost.

For example, China has developed modular designs for railway stations and other infrastructure components that can be quickly assembled on site. New materials for railway tracks that can help reduce maintenance costs over the long term – such as high-strength steel and concrete ties – have also been developed.

Gao’s team said China had “agreed in principle to conditionally transfer or pass on technology, skills and knowledge in 11 areas” of high-speed railway construction to Thailand.

Technology transfers between organisations or countries can involve transferring patents, licences or other intellectual property rights, according to a railway scientist in Beijing who is not part of the negotiations and requested anonymity.

Information and expertise is typically shared through training programmes, workshops and other activities. And while such transfers are usually done for a fee or other compensation, the scientist noted that “it can be free”.

According to Gao’s team, China could provide Thailand with information on materials used in constructing the railway tracks and the best practices for laying tracks in different terrain.

Other expertise that could be passed on includes designing railway stations for improved passenger flow, building bridges over rivers or other bodies of water at a faster speed and lower cost, preparing the ground under railway tracks to make it stable and secure, and how to design and build safe tunnels.

In the paper, Gao’s team said other important tips to improve construction quality and speed would also be shared – from land surveys and managing nearby water resources to tunnel lighting and the heating, ventilation and air-conditioning systems in stations and other facilities.

The China-Thailand railway project will extend 873km – from Kunming in southwest China to Bangkok in Thailand – with trains travelling at speeds of up to 250km/h.

It is an important part of Beijing’s
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as it will be a key link in the “southern corridor” connecting China with Southeast Asia. It will pass through Thai cities including Chiang Mai and Nakhon Ratchasima and will connect with other transport networks in the region such as the Laos-China Railway and the Malaysia-Singapore High-Speed Rail.


The railway is expected to help facilitate trade between China and Southeast Asia by providing faster and more efficient transport for goods, boosting tourism and creating new business opportunities.

In the first phase, a 250km railway line is being built between Bangkok and Nakhon Ratchasima, with China playing a key role in the design and construction.

For phase two, a 355km railway line will be built between Nakhon Ratchasima and Nong Khai, located on the border with Laos. Gao’s team said the Chinese role in this phase would be reduced, with Thai companies taking on more of the design and construction.
The final phase of the project will see a railway line built from Nong Khai to Vientiane in Laos. That section will connect with the Laos-China Railway, which is also being built as part of the belt and road scheme.
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According to the Chinese team, negotiations on the Thai project were “very difficult”. Thailand declined China’s offer to finance the entire project, opting instead to use a mix of government funds and private investment – and putting negotiations on a more equal footing.

Among the issues on the table were China’s high-speed railway standards, which are not always compatible with international norms and had to be reviewed and evaluated by Thai officials to ensure they met the country’s safety and regulatory requirements.
The qualifications of the Chinese engineers involved in the project were also an issue. “There is no mutual recognition mechanism for the qualifications of engineers and architects between China and Thailand, so the Thai side does not directly recognise the relevant technical qualifications of Chinese technical personnel,” Gao said in the paper.

She said the Chinese engineers had to undergo an additional training and certification process so they could work on the project.
According to the Chinese team, the technology transfer is conditional on Thailand switching to China’s high-speed railway standards.
“Western countries like the United States and Europe have established industrial standards that have been in use for over a century,” the team noted in the paper. “Even in less developed countries along the belt and road, Western standards continue to have significant influence. Many of Thailand’s subway projects use European or Japanese standards.”

Chinese high-speed trains can reach speeds of up to 350km/h, faster than most bullet trains in Europe and Japan. They are also typically longer – the Fuxing used on the Beijing-Shanghai line is more than 400 metres (1,300 feet), nearly twice the length of the TGV in Europe.
China also uses its own signalling system for its network, which is not compatible with the European or Japanese ones.

Gao’s team said the Chinese engineers had insisted on using the country’s railway standards during the negotiations with Thailand, on the basis that it would be more cost-effective and easier to integrate with existing railway infrastructure in China and other countries in the region.

The transfer of technology involved in the design and manufacture of Chinese trains such as the CRH380 series, as well as other advanced technologies like power supply, is still being negotiated between Beijing and Bangkok, according to the paper.

China holds patents on certain track materials and signalling systems used in its high-speed railway network, and the team said the negotiations could involve determining how the patents would be licensed or shared with Thailand.
 

Strangelove

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Tech Transfer: Why Indonesia Likes Partnering with China​


Jayanty Nada Shofa

May 29, 2023 | 11:00 pm


Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan. (Antara Photo)

Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan. (Antara Photo)

Jakarta. Indonesia says that technology transfer is one of the reasons why it enjoys partnering with China, as Jakarta works on developing its downstream industry.

“What I like about partnering with China is the technology transfer. They are willing to share their technologies. Without them, we would not have been able to export $34 billion [in 2022] from the nickel downstream industry,” Chief Investment Minister Luhut Binsar Pandjaitan told the China (Sichuan)-Indonesia Economic and Trade Conference in Jakarta on Monday.

“We do not have a national debt with China. It is all business-to-business [B2B],” Luhut said.

Indonesia is trying to shift from nickel ores to products of higher added value such as nickel sulfates, cathodes to even battery recycling. The country has imposed a full ban on exports of unprocessed nickel ores since Jan. 2020.

Government data shows that Indonesia exported $34 billion worth of exports from the downstream nickel industry, of which $14.3 billion were iron and steel exports. The exports of the downstream nickel industry totaled an estimated $8 billion as of M3-2023 year-to-date.

Indonesia-China trade amounted to $133.6 billion in 2022. Indonesian exports to China also stood at $65.9 billion that year, according to the Trade Ministry.

Luhut’s estimates revealed that China represented the largest market share —reaching 22.3 percent— for Indonesia’s top export destinations. Followed by the US (9.8 percent) and Japan (8.4 percent).

In 2014-2022, Chinese investment in Indonesia reached $30.8 billion with 15,906 projects. The accumulated total over the said period placed China in third place in the ranking of Indonesia’s top foreign investors. Chinese investment mostly went to the metal (non-machinery) and electronics industries, totaling $12.04 billion. Seconded by transport, storage and communication ($6.97 billion).
Last week, Indonesia inked a memorandum of understanding with Chinese electric vehicle (EV) giant BYD in Shenzhen. The MoU aims to explore the possibility of Chinese investment in Indonesia’s EV industry.

“We wish to develop the Indonesian EV ecosystem so [our country] would become Southeast Asia’s largest automotive market. [...] With abundant resources, strategic geographical location, and government support, I believe Indonesia has the key recipe to develop its domestic EV industry,” Luhut was quoted as saying in a press statement on the MoU with BYD.
 

tphuang

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Not sure if it is a good idea to invest in Philippines right now.
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Well, that's am actual deal they can hold over marcos administration now. Plus all the other investment promises. All contingent on phillipines singing scs code of conduct and working with china.
 

Strangelove

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Thailand hosts giant China business convention to lure FDI​

Country to promote EVs and other sectors to 4,000 attending in Bangkok

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A Chinese electric vehicle at the Bangkok International Motor show in March 2022. EVs are one of the areas Thailand is promoting for investment. © Reuters

APORNRATH PHOONPHONGPHIPHAT, Nikkei staff writerJune 14, 2023 13:36 JST

BANGKOK -- Thailand will host a large convention of Chinese businesses later this month, hoping to draw more investment from China in areas such as electric vehicles to boost its economy post-pandemic.

With China becoming the largest source of foreign direct investment (FDI) for Thailand last year, the event should further catalyze investment inflows from Asia's largest economy.

The Thai-Chinese Chamber of Commerce will hold the World Chinese Entrepreneurs Convention (WCEC) from June 24 to 26 at the Queen Sirikit Convention Center in Bangkok, with more than 4,000 Chinese businesspeople from around the world expected to gather for discussions, exhibitions, business matching and trade talks.

"It's a big convention that world-class businesspeople will gather here in Bangkok," chamber President Narongsak Putthapornmongkol said. "The theme of the meeting is to promote trade and investment for win-win partnerships that help boost the Thai economy to recover quickly from the COVID pandemic."

He said the organizer has sent invitations to several bigwigs in Thailand, including Dhanin Chearavanont, the country's richest man and the senior chairman of CP Group, Thailand's largest conglomerate, and Charoen Sirivadhanabhakdi, the founder and chairman of TCC Group, a beverage and real estate conglomerate.

Prime Minister Prayuth Chan-ocha is also expected to attend.

The convention comes amid political uncertainty in the Southeast Asian country after the May 14 general elections. The Move Forward Party won the most seats, but whether it can successfully form the next government remains to be seen,
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over the transition process and policy continuity.

The key topics expected to be presented at the convention include the promotion of Thailand's Eastern Economic Corridor (EEC), investment privileges for the special development zone, and incentives for the EV sector to attract more Chinese automakers to invest in the zone.

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China ranked as Thailand's No. 1 trading partner last year, with trade between the two countries worth 3.69 trillion baht ($106 billion), accounting for around 18% of overall Thai trade value, according to the Ministry of Commerce.

Thailand has been reaching out to several countries to draw investments, particularly in the EEC. However, Chinese FDI is on the rising trend as the government is now highlighting on EV, wooing several Chinese automakers to come in.

Last year, China was the biggest foreign investor in Thailand, totaling 77.4 billion baht, mainly in the electronics and automobile sectors, according to the Board of Investment of Thailand (BOI), a government agency. Japan was second at 50.8 billion baht, followed by the U.S. at 50.3 billion and Taiwan at 45.2 billion.

Great Wall Motor and BYD are among the major Chinese EV makers that have already invested in Thailand. The BOI had said it was also in talks with other Chinese EV assemblers to produce eco-friendly cars in Thailand.

The biennial WCEC started in 1991, with the most recent edition held in London in 2019 before a pandemic hiatus. Thailand previously hosted the event in 1995, and this year will be the second time.

Narongsak of the Thai-Chinese Chamber of Commerce said this event itself will contribute to Thailand's core tourism sector, too, as the participants and their entourages are expected to spend further leisure time at Thailand's famous tourist attractions.

"At least 300-400 million baht ($8.6 million to $11.5 million) would be [circulated] in Thailand, as most of them plan to spend more time traveling in Thailand," he said.
 

luminary

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Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said that the project cost will be cheaper if collaborating with China again.


Btw, this is a good compendium of all the China-bashing and Japan boners from Western-funded MSM that the Jakarta – Bandung train went through from start to completion.
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– [25/11/13]

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– [05/08/15]

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– [01/10/15]

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– [03/02/16]
“Indonesia’s transportation ministry laid out a litany of shortcomings in plans for a $5.5 billion China-funded high-speed railway, casting doubt on the project and spotlighting President Joko Widodo’s limits in turning megaprojects into reality as he tries to draw foreign investors to Southeast Asia’s largest economy.”

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– [30/05/17]

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– [07/09/17]

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– [19/02/18]

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– [11/10/18]
“Indonesia plans to build Southeast Asia’s first high-speed railway — but almost nothing is going to plan.”

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– [28/07/20]

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– [24/09/20]
“South-east Asia’s first bullet train is half-way there, according to the Indonesian government. Others say the much-delayed $7.8 billion project, part of China’s Belt and Road Initiative, should never have begun.”

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– [03/12/20]

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– [01/11/21]

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– [10/12/21]

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– [06/02/22]

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– [06/02/22]

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– [11/04/22]

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– [03/11/22]

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– [16/11/22]
“Jakarta-Bandung high-speed rail showcased at G20 Summit but long-delayed project has been more risk than reward for Indonesia.”

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– [30/11/22]

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– [28/02/23]
“Cost overruns rise question whether project is viable.”

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– [03/04/23]

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– [17/04/23]

Then when the HSR starts running you can hear them cope and seethe through their teeth.
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– [26/06/23]

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– [23/06/23]

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– [22/06/23]
“Indonesia’s first bullet train, the Jakarta-Bandung high-speed train (KCJB), conducted a trial test today in which reaching a speed of 350 kilometers per hour, the peak speed of its operation on a 142.3-kilometer track.

This figure breaks the Indonesian World Records Museum (MURI) record as it far exceeds the speed of regular trains of up to 120 kilometers per hour.”

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– [22/06/23]

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– [21/06/23]
“The inauguration ceremony will take place a day after the Independence Day commemoration according to the planned time.”

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– [24/05/23]

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– [23/05/23]
“The Jakarta-Bandung high-speed railway has entered its final testing period, with operations expected to begin in June 2023. As part of Beijing’s Belt and Road Initiative, the rail line will cut travel time between the capital Jakarta and the city of Bandung from over three hours to just under 40 minutes. It will also be Southeast Asia’s first high-speed railway.”

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– [03/02/23]
 
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