**Title: Deepening Sino-Thai Cooperation: Injecting New Energy into Thailand’s Economic Development – An Interview with Xu Mingzhi, Peking University Young Scholar**
**By: Li Yingmin and Zhao Jingnan**
Recently, Thailand’s newly formed cabinet was inaugurated, with Prime Minister Prayuth Chan-o-cha emphasizing the government’s commitment to fostering economic development and restoring public confidence in the country’s future.
China has consistently been Thailand’s largest source of foreign investment and tourists, maintaining its status as the top trading partner for several years. The Eastern Economic Corridor in Thailand aligns closely with China’s Belt and Road Initiative. What potential benefits can we anticipate from future economic and trade collaborations between China and Thailand? Could this partnership enter a fast lane of comprehensive growth? Xu Mingzhi, a young scholar from Peking University, offered his insights in an exclusive interview with China News Service.
**China News Service (CNS) Reporter:** With the new Thai government in place, do you think that economic and trade cooperation between China and Thailand will accelerate into a phase of comprehensive development?
**Xu Mingzhi:** The new Thai government aims to stimulate economic growth while addressing historical challenges and fostering public confidence in the future. A mix of factors will contribute to enhancing Sino-Thai economic cooperation. Key drivers include improved regional economic coordination, complementary economic structures, frequent personnel exchanges, and adjustments in global supply chains.
Firstly, the geographical proximity of China and Thailand provides a solid foundation for regional cooperation. Secondly, aligning policies is crucial to propel this collaboration further. The close integration of Thailand’s Eastern Economic Corridor with China’s Belt and Road Initiative demonstrates a strong commitment to investment protection, improving the business environment, and providing various policy incentives. This has led to a surge of Chinese companies making strategic investments in Thailand.
Moreover, regarding economic complementarity, China’s strengths in sectors like e-commerce, telecommunications, automotive manufacturing, and photovoltaics align seamlessly with Thailand’s “Thailand 4.0” strategy, facilitating the country’s transition from traditional manufacturing to more advanced industries. Additionally, Thailand’s abundant resources—such as rubber, fruits, and seafood—offer significant appeal to the Chinese market.
China is also the largest source of tourists for Thailand. The easing of tourism visa policies, combined with compatible tourism resources, has greatly bolstered cultural exchanges and commercial cooperation. As global supply chains adapt, Thailand has emerged as a crucial node for Chinese enterprises looking to establish a presence in Southeast Asia. This development presents new market opportunities for both nations and strengthens collaboration within the industrial chain.
**CNS Reporter:** In the rapidly evolving Sino-Thai cooperation landscape, which sectors stand out? Where do you anticipate the focus of collaboration will shift?
**Xu Mingzhi:** At this juncture, trade and investment are clearly significant areas, with infrastructure and the digital economy also showing great promise. China has maintained its position as Thailand’s largest trading partner and is the main source of imports, as well as the second-largest export destination. As of 2023, Chinese investments in Thailand reached $4.6 billion, accounting for 25% of all foreign investment in the country. This success can be attributed to the complementary economic structures and favorable investment conditions created by regional cooperation policies.
There’s immense potential in infrastructure and digital economy collaboration. China has been a key player in advancing high-speed rail, ports, and energy infrastructure. The China-Thailand railway project is a flagship initiative that, when completed, will significantly enhance Thailand’s role as a regional transportation hub and foster further economic integration. Concurrently, Chinese tech giants, such as Alibaba and Tencent, are driving the development of e-commerce, fintech, and smart cities in partnership with Thai authorities and businesses, highlighting vast opportunities for technological cooperation.
**CNS Reporter:** As we enter a new era, what key policies and agreements have been established to facilitate cooperation between China and Thailand? What new opportunities and policy advantages do you foresee?
**Xu Mingzhi:** Cooperation under the Belt and Road Initiative is continually strengthening, especially in infrastructure projects like the China-Thailand railway, which has already made significant strides. The Regional Comprehensive Economic Partnership (RCEP) offers various benefits, including tariff reductions and increased market access, which further enhances cooperation in the regional economy. Moreover, agreements such as the China-Thailand Strategic Cooperation Plan (2022-2026) and joint efforts to promote Belt and Road construction create a solid foundation for multi-faceted collaboration in trade, investment, digital economy, clean energy, supply chain security, and technological innovation.
Looking ahead, we can expect even closer cooperation in core areas such as new energy and green infrastructure development, particularly in sectors like electric vehicle production, clean energy, and environmental technology. The digital economy also presents substantial collaboration opportunities, especially in advanced technologies like big data, artificial intelligence, and the Internet of Things.
**CNS Reporter:** Considering the rapid influx of Chinese investments in Thailand, how would you evaluate their impact on Thailand’s economic development, technological advancement, and job creation? In what ways are these companies contributing to Thailand’s economy?
**Xu Mingzhi:** The Thai-Chaozhou Industrial Park, one of China’s first overseas economic and trade cooperation zones, has drawn nearly 250 Chinese companies, creating around 50,000 local jobs across various sectors, including automotive parts, new energy, advanced materials, smart home technology, and mechanical electronics. The total industrial output from these ventures exceeds $30 billion, playing a vital role in Thailand’s economic growth and job creation.
In addition to direct economic impacts and job creation, investments from Chinese companies have also spurred technological advancements and industrial upgrades in Thailand. For instance, in the electric vehicle sector, Sino-Thai cooperation is intensifying, with seven Chinese automotive manufacturers either operational or under construction in Thailand. The high-end electronics industry is another key focus area. The investment applications for Thailand’s printed circuit board sector have surged, surpassing 140 billion Thai Baht for 2023-2024, with substantial participation from firms in Mainland China, Taiwan, Japan, and Hong Kong.
Chinese investments in the electric vehicle and high-end electronics sectors not only introduce advanced technologies and production methods to Thailand but also enhance the nation’s research, development, and innovation capacities. This Sino-Thai cooperation injects fresh energy into Thailand’s economic development, optimizing industrial structures and boosting the country’s competitiveness in global supply chains.
**CNS Reporter:** As Sino-Thai collaboration deepens, in what ways has the trade structure between the two countries evolved? What roles will be emphasized more in future collaborations?
**Xu Mingzhi:** The ongoing deepening of Sino-Thai cooperation has broadened the trade structure beyond traditional commodities like agricultural products and light-industrial goods to include a wider array of high-tech and value-added products. The market share of Chinese manufacturing products, including machinery, electronics, and automotive components, is expanding significantly in Thailand, which reflects an upgrade in our bilateral trade.
There has been notable progress not only in digital economy cooperation but also in the green technology sector. Thailand’s largest floating solar power generation initiative—the water-based photovoltaic project—annually reduces CO2 emissions by 47,000 tons, aiding Thailand’s efforts to diminish its dependence on coal-powered electricity. In smart manufacturing, the establishment of Southeast Asia’s first fully connected 5G factory highlights collaborative advancements, facilitating Thailand’s “4.0” digital transformation strategy and driving upgrades in the smart manufacturing sector.
Looking forward, emerging areas such as the digital economy, green energy, and smart manufacturing will become increasingly significant in Sino-Thai economic cooperation, propelling our economic partnership to new heights while reinforcing the relationship between our two nations.
**CNS Reporter:** Over the past decade since the establishment of the comprehensive strategic cooperative partnership, which areas have seen the most significant benefits?
**Xu Mingzhi:** Elevating the strategic partnership to a comprehensive strategic cooperative partnership signifies a dedication to deeper collaboration across a wide range of fields. This partnership extends beyond trade and investment into infrastructure development, technological innovation, and other high-value-added industries. Joint efforts in emerging sectors like electric vehicles, clean energy, the digital economy, artificial intelligence, and aerospace technology have generated robust momentum for the transformation and sustainable growth of our economies.
Moreover, this upgraded partnership has enhanced cultural exchanges, tourism, and education, solidifying the amicable ties between China and Thailand. With the convergence of Thailand’s development strategies and China’s Belt and Road Initiative, Thailand’s established manufacturing sector is poised for substantial benefits from increased cooperation in infrastructure, the digital economy, and high-value-added manufacturing (such as electric vehicles and electronics). These collaborative ventures will effectively elevate the economies of both countries, driving them toward greater advancement.
