Recently, Thai Prime Minister Prayut Chan-o-cha led a cabinet delegation to China to celebrate the 50th anniversary of China-Thailand diplomatic relations, signing an agreement for the second phase of the China-Thailand Railway project and committing to deeper cooperation in digital economy, new energy vehicles, and other sectors. In addition, heads of state from Pakistan, Brunei, Kyrgyzstan, and other countries have made intensive visits to China, sparking a new wave of diplomatic visits.

This not only symbolizes the upgrading of China’s relationship with Southeast Asia but also reveals the strategic value of the Southeast Asian market, sending a positive signal for China’s foreign trade with Southeast Asian countries.

Why is China keen on closer cooperation with Southeast Asia? What opportunities arise from leveraging Thailand as a gateway to Southeast Asia?

Located in the heart of the Indochina Peninsula, Thailand is a natural bridge connecting China with ASEAN. The approval of the second phase of the China-Thailand Railway (scheduled to open in 2031) will connect with the China-Laos Railway, forming a “golden transport corridor” running through China, Laos, and Thailand, which could eventually extend to Malaysia and Singapore, significantly lowering cross-border logistics costs. The Thai government is promoting the “Eastern Economic Corridor (EEC)” with policies such as tax reductions and land incentives for foreign investments, particularly in the areas of new energy vehicles and digital economy, which are highly compatible with Chinese enterprises.

Thailand, the second-largest economy in Southeast Asia, has a per capita GDP exceeding $7,000, with a large middle-class consumer base. By 2024, China and Thailand will enter the “visa-free era,” with over 6.7 million Chinese tourists expected, leading to a surge in demand in e-commerce, tourism, and retail sectors. Thailand’s e-commerce market is growing at an annual rate of 20%, and the penetration rate of digital payments is rapidly increasing, creating fertile ground for cross-border e-commerce.

Although Thailand’s political situation may experience fluctuations, Prime Minister Prayut’s government has made clear commitments to combat online fraud, ensure tourist safety, and protect Chinese business interests. Compared to the regulatory uncertainties in Vietnam and Indonesia, Thailand maintains a more stable relationship with China among ASEAN countries, making it a preferred springboard for mitigating geopolitical risks.