Embracing a prosperous future through Sino-Thai economic collaboration

People taste fruits from Thailand at the 21st China-ASEAN Expo in Nanning, Guangxi Zhuang autonomous region, on Sept 25. YU XIANGQUAN/FOR CHINA DAILY

In recent years, Bangkok and other parts of Thailand have experienced an increase in Chinese business activity, including Chinese-owned dining, tourism and transportation investments. While some local Thai communities have expressed concerns about the competition these investments may create for local businesses, this expanded presence presents significant opportunities for both Thailand and China to build a mutually beneficial, interconnected future. By addressing these economic shifts through cooperation, open dialogue and shared understanding, both nations can strengthen their ties, foster economic growth and nurture lasting prosperity.

Sino-Thai trade and investment landscape

China is Thailand's largest trading partner, while Thailand is China's third-largest partner within ASEAN. In 2023, the two nations achieved a bilateral trade volume of US$126.28 billion. China continues to be the primary destination for Thai agricultural exports, consistently importing over 40 percent of these products. Meanwhile, around 80 percent of China's exports to Thailand comprise capital and intermediate goods.

China also ranks as the leading source of foreign investment in Thailand, with over 2,400 Chinese companies operating in Thailand. Over the past two years, 588 new investment projects have been registered, totaling close to US$7 billion. Chinese investments are largely focused on sectors such as electric vehicles, the digital economy, new energy and advanced manufacturing industries. These investments contribute to Thailand through job creation, investments and social and educational initiatives aimed at a variety of small businesses. For instance, Bangkok is home to more than 700 Sichuan hotpot restaurants.

Promoting economic connectivity and innovation

The growing presence of Chinese businesses has the potential to create new economic pathways, encouraging the sharing of expertise, resources and innovations. As Chinese and Thai businesses collaborate in diverse sectors, from technology to clean energy, they foster knowledge transfer that benefits local industries and enhances Thailand's role as a regional economic hub.

China's expanding role in the Thai economy also has a positive impact on local employment. New job opportunities arise as Chinese businesses enter or expand within Thai markets, enabling skill development and economic mobility for the Thai workforce. For example, investment in emerging fields such as electric vehicles and digital technologies opens doors for Thai professionals to develop their expertise in high-demand industries.

Opportunities for growth through tourism

Chinese tourism has long been a vital contributor to Thailand's economy, with millions of Chinese tourists visiting annually. The expansion of Chinese-owned hotels, restaurants and tour operators can enhance Thai tourism by offering services that cater to a diverse range of tourists and meet evolving consumer preferences. Moreover, investments in hospitality and infrastructure create a more robust tourism industry that benefits both local and international visitors.

Addressing concerns through dialogue and cooperation

If perceptions and attitudes towards Chinese investments are constructively addressed, it could prevent potential misunderstandings and foster a smoother trade relationship with China, ultimately strengthening Thailand's export and tourism sectors. Establishing forums where Thai and Chinese businesses, policymakers and community members can openly discuss challenges and identify joint solutions is essential. This cooperative approach promotes mutual understanding while maximizing the economic and cultural benefits of Sino-Thai collaboration.

Building a lasting partnership

Through active engagement and cooperation, Thailand and China have the opportunity to build a lasting, prosperous partnership. By welcoming Chinese investments, Thailand can leverage China's market size, technological advancements and financial resources to fuel its own economic progress. Similarly, China can benefit from Thailand's strategic location and strong ties within ASEAN to enhance its regional influence.

With a commitment to cooperation, respect and mutual growth, the path forward promises a future where both nations thrive together. As Thailand and China work side by side, they can foster an environment of shared prosperity, forging a resilient partnership that enriches the lives of their citizens and strengthens their role within the global economy.

The author holds a Master's degree in Management from Harbin Institute of Technology and has a background in business and management, specializing in strategic guidance and solutions for Chinese companies both domestically and internationally. The views don't necessarily represent those of China Daily.

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