BANGKOK -- Word of a sudden Thai-Chinese deal to cut a shipping channel across Southern Thailand evaporated quickly today.

A Chinese Foreign Ministry spokesmen today disspelled media reports in his country that the two nations had agreed in principal to construct a THB941 billion (USD28 billion) canal across the Isthmus of Kra in southern Thailand as a new shipping route to shortcut the Straight of Malacca.

Spokesman Hong Lei repeated comments made by the Chinese Embassy in Bangkok.

It seems that China is now more interested to join the Dawei Deep Sea Port Project in Myanmar instead. 

Kra Canal

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