Thailand stalls China's submarine deal

Beijing is losing its sole ally in the South China Sea reason as Bangkok has stalled the USD 724 million purchase of two submarines from China amid the country's declining economic situation. It has also taken a step back from the Kra Canal proposal, dampening Beijing's hopes for a strategic alternative to the Strait of Malacca.

Bangkok: Thailand, which once was the strongest ally of Beijing in the South China Sea region, had decided to not only postpone the procurement of two submarines from the Asian giant but has also put on hold the Chinese proposal for building a canal in the Bay of Bengal and replaced it with its own project.

According to EurAsian Times, under a 2015 deal, Thailand was one of the first countries to buy Chinese naval hardware and finalised its purchase of three submarines in 2017, with the first one expected to be delivered in 2023.

Following a public outrage on the USD 724 million purchase of two submarines from China amid the country's declining economic situation, Thailand decided to not only postpone the procurement of two submarines from Beijing but has also put on hold the Chinese proposal for building a canal in the Bay of Bengal and replaced it with its own project.

"The navy will negotiate with China to delay for another year," Anucha Burapachaisri, a government spokesperson, was quoted as saying.

"The Prime Minister Prayut Chan-o-cha has given priority to the concern of the public who are worried about the economy," he added.