China's rail link to hit Indian exports
BEIJING: The $707 million Yuxi-Mengzi rail line, linking Kunming in southwest China to Singapore in southeast Asia, will become operational by the end of this year, posing a threat to Indian exporters competing for market space with China. The rail line, originating in China's Yunnan province, will traverse through Vietnam, Laos, Thailand and Singapore, completing a course of over 2,000km.
The announcement comes just before Chinese commerce minister Chen Deming meets his Indian counterpart Anand Sharma at the joint economic group on August 27 in New Delhi.
China also plans to build rail routes linking Kunming to Myanmar and, eventually, Bangladesh. On completion, it will create a grand alliance of Asian markets supporting each other, while expanding China's markets. The line will provide an impetus to trade which has slumped due to cancellation of purchase contracts by recession hit West.