Chinese-Thai relationship stronger than ever

China and Thailand established diplomatic relations on July 1, 1975. Over the last 39 years, thanks to a concerted effort by both sides to strengthen bilateral ties at all levels, trade between Thailand and China has increased seven times, and now stands at more than $70 billion, more than China's trade with the rest of ASEAN combined. China is now Thailand's second-largest trading partner, while Thailand is among China's top-15 import-export markets.

In fact, commercial ties between the two nations dates back to 1985, when they signed a deal for bilateral investment and closer integration in manufacturing and agricultural supply chains.

Chinese investment in Thailand is now matched only by Japan, while thousands of Thai companies have invested in China. This bilateral investment has led to major structural changes in trade, with computer components, electronics and chemicals now major export items from both countries.

Given that wages are rising in both countries, Thailand and China now face the challenge of finding lower-cost labor, while preserving strong industrial bases. One way to achieve this, says Korn Dabbaransi, president of the Thai-Chinese Friendship Association, is to move toward specialist production.

"Thailand can provide high-quality and sophisticated manufacturing facilities for certain products and lines and support other ASEAN countries to develop their manufacturing hubs through financial services, investment, logistics and distribution. This would be a good way of taking the bilateral relationship to the next level��China is seeking to strengthen its role as a partner for ASEAN and Thailand can take a lead on this," he says.

Over the years there have been many joint meetings and high-level visits to both countries by leading dignitaries, including members of Thailand's royal family, particularly HRH Princess Maha Chakri Sirindhorn. There have also been numerous private sector exchanges such as fact-finding visits, trade shows and business matchmaking events.

Last year marked the 10th anniversary of the China-ASEAN strategic partnership, and Thailand was the first stop on a tour of four ASEAN nations by Chinese Foreign Minister Wang Yi. He pointed out at the time that the Thai-Chinese relationship is special: "a treasure that ought to be nurtured by both countries".

Later in the year, China's Premier Li Keqiang made a three-day visit to Thailand that was high-lighted by the signing of several economic and trade agreements.

Thailand is the country coordinator for promoting relations between China and ASEAN, a position it values highly, and will continue to use to benefit trade and other ties throughout the region.

(China Daily European Weekly 07/04/2014 page13)