On October 8, 2023, in an exclusive interview with China News Service, Xu Mingzhi, a Tsinghua University Young Scholar, discussed the deepening cooperation between China and Thailand and its potential impact on Thailand’s economic development.
As Thailand’s new cabinet was officially sworn in, newly appointed Prime Minister Prayuth Chan-o-cha emphasized the government’s focus on bolstering economic growth and restoring public confidence in the future of Thailand. China remains Thailand’s largest source of foreign investment and tourism, continuing its status as the top trading partner. With Thailand’s Eastern Economic Corridor project aligning closely with China’s Belt and Road Initiative, we wanted to explore what policy benefits will emerge from future Sino-Thai economic and trade cooperation.
**China News Service Reporter:** With the new Thai government in place, do you see Sino-Thai economic and trade cooperation entering a phase of rapid development?
**Xu Mingzhi:** Absolutely. The Thai government has clearly stated its intention to prioritize economic development, address historical issues, and restore public confidence in the country’s future. A variety of synergistic factors will drive Sino-Thai economic and trade cooperation into a fast lane. These include deeper regional economic cooperation, complementary economic structures, increased people-to-people exchanges, and strategic adjustments in global supply chains.
First, the geographic proximity of China and Thailand provides a solid foundation for deep regional economic cooperation. Secondly, policy alignment is crucial for propelling collaboration. The integration of Thailand’s Eastern Economic Corridor with China’s Belt and Road Initiative indicates a strong commitment to investment protection, improved business environments, and policy incentives—all of which attract numerous Chinese companies to make strategic investments in Thailand.
Moreover, in terms of economic complementarity, China excels in high-tech and advanced manufacturing sectors such as e-commerce, communication technology, automotive manufacturing, and photovoltaics, which aligns well with Thailand’s “Thailand 4.0” strategy aimed at upgrading from traditional manufacturing to high value-added industries. Thailand’s abundant resources, including rubber, fruits, and seafood, also hold significant appeal for the Chinese market.
As the largest source of tourists for Thailand, the relaxation of tourism visa policies and the complementary tourism resources between our two countries have greatly enhanced cultural exchange and commercial cooperation. With the continuous adjustment of global supply chains, Thailand has become a critical node in the strategic plans of Chinese enterprises in Southeast Asia, offering new market opportunities and reinforcing deep collaboration within industrial chains.
**China News Service Reporter:** What sectors do you believe will show significant performance during the accelerated development of Sino-Thai cooperation? Where should we focus our efforts in the future?
**Xu Mingzhi:** Trade and investment undoubtedly stand out as the most significant areas of cooperation. Infrastructure and the digital economy show immense potential for growth as well. For years, China has consistently been Thailand’s largest trading partner and leading source of imports and exports. As of 2023, Chinese investments in Thailand totaled $4.6 billion, accounting for 25% of all foreign investment in the country. The impressive performance in trade and investment can be attributed to complementary economic structures and regional cooperation policies that offer numerous investment conveniences.
In the infrastructure and digital economy sectors, the potential for cooperation is vast. China’s rich experience in building high-speed rail, ports, and energy infrastructure has led to significant collaboration in Thailand.
One notable project is the Sino-Thai railway, which represents an important milestone in our cooperation. Once completed, it will greatly enhance Thailand’s status as a regional transportation hub and further promote regional economic integration. Additionally, Chinese tech giants like Alibaba and Tencent are driving development in e-commerce, fintech, and smart city projects through partnerships with the Thai government and businesses, showcasing the broad possibilities for modern technological collaboration.
**China News Service Reporter:** What key policies or agreements have been introduced recently to boost cooperation, and what new opportunities or policy benefits do you foresee in the future?
**Xu Mingzhi:** The collaboration under the Belt and Road Initiative is constantly deepening, particularly with significant progress in infrastructure projects like the Sino-Thai railway. The Regional Comprehensive Economic Partnership (RCEP) provides substantial benefits such as tariff reductions and expanded market access, promoting cooperation between both countries in the regional economy. Additionally, the China-Thailand Joint Action Plan (2022-2026) and the cooperative framework supporting the Belt and Road Initiative lay a solid foundation for collaboration in various fields, including trade and investment, digital economy, clean energy, supply chain security, and technological innovation.
Looking ahead, China and Thailand are likely to collaborate more in key areas like new energy and green infrastructure, with expectations for investment to continue growing in electric vehicle manufacturing, clean energy, and environmental technology. Moreover, the digital economy holds vast prospects for both sides, especially in frontiers like big data, artificial intelligence, and the Internet of Things.
**China News Service Reporter:** With a rapid increase in Chinese investments in Thailand, how do you assess their impact on Thailand’s economic development, technological upgrades, and job creation?
**Xu Mingzhi:** The Thailand-China Rayong Industrial Park, one of the first overseas economic and trade cooperation zones from China, has attracted nearly 250 Chinese enterprises, creating approximately 50,000 jobs locally. These companies span diverse sectors, including automotive components, new energy, new materials, smart home technologies, and mechanical electronics, reaching an industrial output value exceeding $30 billion, significantly driving economic growth and job creation in Thailand.
Besides these direct contributions, Chinese investments are also significantly promoting technological advancement and industrial upgrades in Thailand. In the field of electric vehicles, collaboration between China and Thailand is deepening, with seven Chinese automakers either currently operating or building plants in the country. High-end electronics are also a focus for Chinese companies, leading to exponential growth in Thailand’s printed circuit board industry, with investment applications exceeding 140 billion baht in 2023-2024, largely from companies based in mainland China, Taiwan, Japan, and Hong Kong.
Investments in electric vehicles and high-end electronics not only introduce advanced technology and production processes to Thailand but also enhance the country’s R&D and innovation capabilities in these sectors. The Sino-Thai collaboration is invigorating Thailand’s economic development, optimizing its industrial structure, and strengthening its competitiveness within the global supply chain.
**China News Service Reporter:** As Sino-Thai cooperation continues to deepen, how has the trade structure changed significantly, and what roles will be more prominent in future collaborations?
**Xu Mingzhi:** With deepening cooperation, the trade structure between China and Thailand has evolved beyond traditional agricultural products and light industrial goods. There is increasing importance placed on high-tech, high-value-added products. Chinese manufacturing products like machinery, electronic goods, and automotive parts are capturing a larger market share in Thailand, reflecting a trend of trade upgrading.
In addition to cooperation in the digital economy, notable achievements have also emerged in green technology cooperation. The floating photovoltaic project that both countries are working on is Thailand’s largest such installation, capable of reducing carbon emissions by 47,000 tons annually, significantly aiding Thailand in reducing reliance on high-polluting thermal power generation. Furthermore, in intelligent manufacturing, Chinese and Thai enterprises jointly created Southeast Asia’s first 5G fully connected factory, effectively supporting Thailand’s Digital 4.0 transformation strategy and advancing the transition of its manufacturing sector.
In the future, new areas such as the digital economy, green energy, and smart manufacturing will play crucial roles in Sino-Thai economic and trade cooperation. The development of these sectors will elevate cooperation to a higher level and deepen the relationship between the two nations.
**China News Service Reporter:** Over the past decade since establishing the comprehensive strategic partnership, which areas have benefited the most?
**Xu Mingzhi:** Elevating the strategic cooperation relationship to a comprehensive strategic partnership signifies a broader scope for deepening cooperation across more fields. This progression extends beyond traditional trade and investment to include infrastructure construction, technological innovation, and other high-value-added industries. Both countries are enhancing collaboration in emerging sectors such as electric vehicles, clean energy, the digital economy, artificial intelligence, and aerospace technology, all of which contribute strong momentum to the economic transformation and sustainable development of both nations.
Additionally, this elevation of relations has deepened cooperation in cultural exchanges, tourism, education, and further solidified the friendship between China and Thailand. Given Thailand’s developmental strategies and China’s Belt and Road Initiative, future cooperation in infrastructure construction, the digital economy, and high-value manufacturing (like electric vehicles and electronics) will stand out as the greatest beneficiaries of this partnership upgrade. The deepening of collaboration in these areas will effectively promote both countries’ economies to a higher level.
