China to build massive trade center in Thailand

BANGKOK (AP) — China plans to build a massive $1.5 billion commercial complex in Thailand that will enable traders to send "Made In China" goods around the world without paying pricey tariffs often imposed in the West, Thai officials and Chinese state media said.

The China City Complex is expected to house more than 70,000 Chinese traders in a sprawling 5.4 million square-foot (500,000 square-meter) facility to be built on the eastern outskirts of Bangkok, Vijit Yang, chairman of the ASEAN-China Economic and Trade Promotion Association said Friday.

China signed a free trade agreement with Southeast Asian countries in January 2010 that reduces or removes tariffs on traded goods. Passing the goods through Thailand will allow Chinese traders to avoid the tariffs imposed by the U.S. and the European Union on many of their exports, said Vijit.

The plan will also give the appearance of reducing China's trade deficit with those countries, which hit $16.8 billion with the U.S. in November and $13.6 billion with the EU.

The surplus has become an increasingly sensitive issue in the EU and the U.S., which buy the vast bulk of China's exports, prompting traders to look for other ways of penetrating those markets.

Overall, China's trade has remained robust despite the global economic crisis. Exports in November jumped 34.9 percent from a year earlier to $153.3 billion, boosted by a surge in sales to other developing economies, which are recovering from the crisis faster than the U.S. and Europe.

The China Daily said the commercial center will sell Chinese-made garments, ornaments and household items, among other things.

Thailand's Deputy Commerce Minister Alongkorn Ponlaboot traveled to China on Wednesday to woo investors, the China Daily said.

Construction is scheduled to begin in March and take 18 months to complete, said Vijit, who is overseeing the project, according to the Thai Commerce Ministry.

Thai Prime Minister Abhisit Vejjajiva is scheduled to chair a ceremony in Bangkok to officially unveil the project on Jan. 18.