Thailand is stepping up its diplomatic and economic engagement with China, aiming to revive confidence and cooperation between the two countries. Prime Minister Phaethongthar Chinnawong's official trip to the People's Republic of China from February 5-8, 2023, marks a significant effort to strengthen bilateral relations as both nations celebrate 50 years of diplomatic ties.
During her visit, Phaethongthar emphasized the importance of trust and mutual respect as the foundation of the longstanding friendship between Thailand and China. "The friendship between our two countries is based on trust and mutual respect, which will bring prosperity and progress for our people," she said, highlighting the commitment to deepen ties. The Prime Minister's remarks were reported by Xinhua.
The economic aspect of the visit is particularly noteworthy, with talks focused on high-tech industries, renewable energy, and digital innovation. According to Nattaphum Teodseth, the Secretary of the Board of Investment, China is one of Thailand's largest sources of foreign direct investment (FDI), especially prominent in the electronics and automotive sectors. He stated, "China has been one of the largest sources of foreign direct investment for Thailand," showcasing the solid foundation on which both nations can build future economic partnerships.
Notably, the trade value between Thailand and China reached approximately $133.98 billion, increased by 6.1% compared to the previous year. This impressive figure underlines the mutual economic interests at stake, as both countries navigate opportunities for collaboration. A sector highlighted during discussions was the automotive industry, with many Chinese manufacturers establishing production bases within Thailand, which reinforces the country's position as a key player within the ASEAN region.
With China's outbound tourism rebounding, part of Phaethongthar's agenda was dedicated to revitalizing the flow of Chinese tourists to Thailand, which is expected to boost the local economy significantly. "We aim to promote cultural exchanges between Thailand and China," Phaethongthar noted, emphasizing the importance of tourism as both nations work to strengthen their relationship through people-to-people connections.
The importance of cultural ties cannot be overstated, with both countries forging agreements to facilitate greater interchanges. The blossoming of these relationships will play a pivotal role not only economically but also socially, fostering greater public engagement between Thai and Chinese citizens.
Dr. Virul Pichaiwongphakdi, director of the Thailand-China One Belt One Road research center, remarked, "The economic cooperation will focus on high-tech industries, renewable energy, and the digital economy," signaling both nations' ambition for future growth trajectories. This approach aligns with the broader global trend of digitalization and value-added production processes, establishing Thailand as a hub for sustainable and innovative industries.
The cooperation extends beyond traditional sectors, tapping potential growth areas in cultural exchanges and tourism, which both countries view as integral to their overall relationship. The previous year saw significant numbers of Chinese tourists visit Thailand, highlighting the reliance on this demographic for boosting Thailand's post-pandemic recovery.
With statistics showing more than 35 million international tourists arrived in Thailand last year, Chinese visitors accounted for approximately 6.7 million of this total, emphasizing their role as significant contributors to the Thai economy. Thailand’s tourism leader, Thapanee Kiatphaibul, noted the importance of fostering favorable conditions for Chinese travelers, stating, “The increase of Chinese tourists not only boosts our tourism revenue and employment but also drives development across various sectors of the economy, such as agriculture and food industries.”
The upcoming commemorations of the 50-year anniversary of diplomatic relations provide fertile ground for both countries to recalibrate existing collaborations and dream bigger. Phaethongthar's visit, seen as not just ceremonial but strategic, emphasizes her administration's willingness to bolster economic and cultural ties and rectify any previous missteps.
Despite the impressive trade figures and potential growth, challenges remain. Issues of bilateral tension, especially concerning irregularities like cross-border crime and the safety concerns raised by recent incidents involving Chinese nationals, necessitate vigilant cooperation. Phaethongthar emphasized, "Our government is resolute about ensuring visitors' safety and bolstering initiatives to combat cross-border crime," as she reassured both nations of her commitment to improving security for international visitors.
With the promise of continued bilateral dialog and trade expansion, Thailand is positioned to reinforce its standing as China's third-largest trading partner within the region. The shaping of concrete plans during Phaethongthar's visit may set the stage for unlimited possibilities, driving both nations toward greater prosperity.