An agreement was made between China and Thailand to build a high speed railway between the two nations. The plan was for China to purchase up to 1.2 million tons of rice (which would be around 14% of the country’s total rice import) from Thailand in exchange for allowing the construction of the railway.
However, on March 12 the Thai Constitutional Court ruled against the project due to corruption charges lodged against current Prime Minister Yingluck Shinawatra. The corruption charges concern this policy directly as questions arise about how the loan money that China will give Thailand during the project will be spent.
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Keywords: China and Thailand’s ‘Rice for Rail’ Project
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