Thailand and Bhutan: AN EXTENDED ORIENTATION IN THE NEIGHBORHOOD

 

Thailand and Bhutan: AN EXTENDED ORIENTATION IN THE NEIGHBORHOOD

 

It appears that the 29th APEC summit in 2022 has further bolstered China and Thailand's ties.

The two nations agreed to cultivate friendly relationships. The One Belt, One Road Initiative (BRI) has become integral to the economic expansion of APEC, ASEAN, SCO, Central Asia, and South-East Asia.

In all of these places—countries, communities, and regions—infrastructural development has been revolutionized by BRI and its flagship project, CPEC. These are now well-connected and coordinated, and they are gradually moving in the direction of greater social and economic integration and prosperity.

Thailand is preparing for the BRI as an ASEAN member and incorporating its significance into the ongoing and future sustainable cooperation between Thailand and China, which is a positive sign for the country's economy, businesses, people, and industries.

Thailand's 4.0 policy, which has 10 targeted industries, is in line with China's Made in China 2015 policy. Now, the two countries are working together to incorporate it into the BRI's strategic expansion.

In this regard, China has provided support to Thailand as part of the BRI in the form of massive investments, technology transfers, and the development of infrastructure, particularly in the Eastern Economic Corridor (EEC), which aims to transform Thailand's economy into an ASEAN hub.

In accordance with the 20-year national economic and social development plan (2017-2036), Thailand's national policy is preparing itself to embrace and support the outcome of the BRI policy push as well as the development of China-Thailand strategic cooperation by connecting the country's EEC with the BRI of China.

In the long run, it will definitely leverage the public's paybacks and maximize its country's socioeconomic interests.

The "Thailand 4.0" development strategy, which includes the expansion of the Eastern Economic Corridor (EEC), anticipates Chinese investment of $50 billion under the BRI banner.

The European Economic Community (EEC) is a special economic zone that focuses on new industries like next-generation automobiles, smart electronics, wealthy medical and wellness tourism, digital and medical services, robotics, aviation, biofuels, and biochemicals, among others.

In this regard, the digital park Thailand, human resource development and education, Eastern Economic Corridor projects and initiatives, and cooperation in modern smart technologies are all examples of new areas of economic cooperation between China and Thailand.

 In terms of investment, joint venture, business expansion, and massive industrialization, close cooperation in robotics and automation, aviation and logistics, bioenergy and biochemicals, the medical and health industry, and, last but not least, digital industries has further strengthened bilateral relations.

The ancient but enticing elephant project of building a canal across the Kra Isthmus in southern Thailand to connect the Andaman Sea and the Gulf of Thailand against the backdrop of a second passage between the Indian and Pacific oceans is of interest to Thai policymakers.

If constructed, the aforementioned dollar canal would hopefully shorten the 1,200-kilometer shipping distance through the Malacca Straits.

President Xi Jinping and his government came up with BRI, which is a massive project. Through infrastructure investment and collaboration, it aims to enhance China's global connectivity. Global economic integration and development could be significantly accelerated by the initiative.

Under the BRI, a Chinese high-speed railway is currently being built. The first high-speed railway in Thailand will connect Thailand to Laos and Kunming in China's southern Yunnan Province. The second high-speed train in Thailand will connect Bangkok to the EEC, a project that Thai officials said would help the EEC integrate with the BRI.

Data from China's General Administration of Customs show that China has been Thailand's largest trading partner and a major export market for agricultural products for nine years in a row.

China and Thailand's bilateral trade volume reached 100 billion US dollars for the first time in 2021, up 33% year-over-year.

In this context, Thailand shipped glutinous rice to China through the China-Laos Railway for the first time in January 2022.

The new channel can preserve the freshness of tropical fruits like durians and coconuts by reducing transportation times.

Through the rail link of the China-Europe freight express, Thailand can now export goods, particularly agricultural products, to China and even Central Asia via the China-Laos railway route.

The estimated $1.2 billion in Chinese investment in Thailand between January and September 2022 makes China Thailand's largest source of applied foreign direct investment (FDI), primarily in the electronic and electric car sectors.

In conclusion, the expansion of the Belt and Road Initiative (BRI) and the Regional Comprehensive Economic Partnership (RECP), in addition to their complementary trade in goods, will bolster and diversify the business, economic, commercial, and technological ties between China and Thailand. BYD, China's largest manufacturer of electric and hybrid automobiles, announced plans to build its first overseas electric passenger car plant in Rayong, a coastal city south of Bangkok, Thailand.

After China-Thailand Railway's massive projects, as well as a number of manufacturing and energy programs, are finished, it is hoped that their business ties will strengthen and stabilize in order to guarantee stable supply chains in the Asia-Pacific region and around the world in the coming years.

Interestingly, between January and September, trade between China and Thailand increased by up to 5.1% year-over-year to $102 billion as a result of the RCEP agreement.

Thai exporters have benefited from tax breaks as a result of this agreement's implementation, but Chinese manufacturers have also been encouraged to ship more goods to Thailand.

Customs statistics show that rubber, chemicals, raw materials for plastic products, data storage devices, automotive parts, integrated circuits, refined oil, and rubber-made medical products are among Thailand's exports to China.

China mostly sends goods to Thailand, including computers, telecommunications equipment, trains, steel, diesel oil, lighting products, medical equipment, textiles, and household goods.

In recent years, the Southeast Asian nation has also gained popularity for its trucks and passenger cars.

In addition, the two countries are pursuing green, high-quality, and innovation-driven growth. As a result, the areas of agriculture, energy, finance, infrastructure, manufacturing, and other fast-growing industries have all seen an increase in bilateral investment cooperation.

In addition, the provision of services, the manufacturing of electric vehicles, 5G, big data, cloud computing, and technological advancement should be areas of cooperation between the two nations.

During the 29th APEC, Xi referred to China and Thailand as "good neighbors," "good friends," "good relatives," and "good partners." He also said that the two countries' ties have stood the test of time and strengthened in this new era.

In 2022, the comprehensive strategic partnership between the two nations will mark its tenth anniversary.

China will continue to collaborate with Thailand to preserve the unique family bond that exists between the two nations, establish a China-Thailand community with a common future, and begin a new chapter in bilateral relations.