Thailand has signed four cooperation agreements with China, mainly focusing on promoting the use of local currencies in their bilateral trade.
The agreements were made in Beijing on Monday during Prime Minister Prayut Chan-o-cha's two-day visit, which ends today, aimed at strengthening ties.
The two premiers witnessed the signing ceremony of four memorandums of understanding, including the establishment of a renminbi clearing bank in Thailand to promote the use of local currencies to help along bilateral trade.
Other agreements are to renew existing bilateral swap agreements for the baht and yuan worth 70 billion yuan, or 370 billion baht, over the next three years between the Bank of Thailand and People's Bank of China.
The deal is a new step in financial cooperation between the two and will help bilateral trade and investment, backers said.
The two other agreements are to share technologies and experiences in water resource management, and to build cooperation to promote Chinese investment in the Thai capital market.
The new pacts came after Thailand awarded China the right on Friday to invest in two railway lines with standard gauge tracks from Nong Khai province to the Map Ta Phut deep-sea port in Rayong province via Kaeng Khoi district of Saraburi province, and from Kaeng Khoi to Bangkok.
The construction cost is estimated at $10.6 billion (348 billion baht), according to a government source.
Thailand and China also signed an agreement for agriculture trading cooperation on Friday. Under the deal, China agreed to buy 2 million tonnes of rice from Thailand.
In their discussion, Gen Prayut asked the Chinese premier to support the sale of Thai goods in China. The two leaders also agreed to forge further cooperation in boosting trade value to $100 billion and the number of tourist arrivals between the two countries to 5 million by 2016.
Meanwhile, Transport Minister Prajin Juntong said in Bangkok that Japan has expressed interest in investing in three double-track rail routes, covering Ban Phu Nam Ron in Kanchanaburi to Rayong, Tak to Mukdahan and Bangkok to Chiang Mai.
Whether those investments will go through will become clearer after a new Japanese government is formed, ACM Prajin said.
Thailand earlier agreed to grant Japan investment rights on the Tak to Mukdahan rail route, but negotiations stalled after the Japanese government was dissolved.
According to the minister, the government has allowed Japan to conduct a feasibility study for the Tak-Mukdahan route. A decision will depend on the outcome of the study, he said.
Both Japan and China expressed interest in investing in the Bangkok-Chiang Mai route, but a government source said Thai officials have not reached a decision.
The source said Japan was irked after Thailand and China signed the agreement on the Nong Khai-Map Ta Phut route, though ACM Prajin has said the deal was a continuation of arrangements begun under the Yingluck government.