Chinese officials quickly shut down reports that China and Thailand have inked a US$28 billion deal to build a canal that would connect the South China Sea to southern Thailand. 

The Straits Times reported May 20 that Foreign Ministry spokesman Hong Lei said in a press briefing the prior day that there were no plans to do so. It was reported that the Chinese government has agreed to work with the Thai government to build the "Kra Canal," which will allow ships to travel between Asia and the Middle East much faster. 

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"We have seen the relevant reports, but I didn't hear that the Chinese government has any plan to participate in the project," Hong Lei was quoted by Xinhua news agency as saying.

The report noted that local media said the now-denied memorandum of understanding was signed in Guangzhou between China-Thailand Kra Infrastructure Investment and Development and Asia Union Group. 

According to Straits Times, the Kra Canal could cut shipping distance by 1,200 kilometers, allowing ships to bypass the busy Malacca Strait and even avoid having to pass by the Singapore's port. 

Institute of Southeast Asian Studies expert Zhao Hong said that although the Kra Canal sounds like a good idea, given the benefits it would create time-wise, Singapore's port has a reputation that cannot be copied or equaled. "China will have to consider the feedback from countries such as Singapore, which it has friendly ties with, given the impact that the Kra Canal might have," he added. 

China Spectator reported that China's ambassador to Thailand had also denied the reports about the partnership.

The rumor was believed to have been first reported by Oriental Daily, which divulged that the US$28 billion project will take 10 years to build and will span 100 kilometers. Straits reported that the Kra Canal would have been 400 meter in width and 25 meters deep.

TagsChina port, Kra Canal, China-Thailand port partnership rumor, Thai canal, Malacca Strait