Chinese investment in Thailand is set to remain at a high level, reflecting a host of positive factors, after China became Thailand's largest foreign investor in 2023, Chinese and Thai analysts said on Wednesday.

Since December, at least 14 A-share listed companies have announced that they are setting up branches, building new plants, expanding existing facilities or increasing their capital in Thailand, amid an accelerated inflows of Chinese investment into Thailand, according to media reports.

ZYNP Corp, a combustion engine component maker from Central China's Henan Province, said in a stock filing on Wednesday that it is investing 210 million yuan ($29.56 million) to build a production base in Thailand.

Circuit Fabology Microelectronics Equipment Co, a printed circuit board (PCB) company based in East China's Anhui Province, announced on Wednesday that it is investing 100 million yuan in Thailand to set up a branch, buy land and build a plant.

Xu Genluo, vice president of Thailand-based Amata Corp, told the Global Times on Wednesday that the Chinese business community demonstrated an unprecedented passion to invest in Thailand last year and groups after groups of business delegations visited his industrial park.

Chinese and Thai analysts told the Global Times that rising Chinese investment is being driven by the new-energy vehicle (NEV) and electronics industries, with incentives by the Thai government. The world economic landscape, facing anti-globalization headwinds, has helped push this trend.

As the two sides work toward a China-Thailand Community with a Shared Future for Enhanced Stability, Prosperity and Sustainability, along with continued and accelerated growth in China-ASEAN trade and investment, Chinese companies' investment in Thailand will continue to surge, they predicted.

Lei Xiaohua, an ASEAN expert at the Guangxi Academy of Social Sciences in South China's Guangxi Zhuang Autonomous Region, told the Global Times on Wednesday that the Thai government has made economic development its top goal and regards attracting investment from China as one of the most important tools for economic development.

Chinese investors are also being attracted by Thailand's relatively complete supply chains and low-cost advantages, and the benefits and convenience brought by the Regional Comprehensive Economic Partnership trade pact that took effect on January 1, 2022, Lei said.

In a move that will boost people-to-people exchanges and commercial ties, Thai Prime Minister Srettha Thavisin announced on Tuesday that Thailand and China will permanently exempt each other's citizens from visa requirements, starting from March, China Media Group reported.

In response, Chinese Foreign Ministry spokesperson Wang Wenbin said that mutual visa exemptions serve the fundamental interests of both peoples, and the government departments responsible for the matter are in close communication on the specifics.

Boosted by the news, searches for the keyword "Bangkok" on Chinese travel platform Mafengwo surged by 200 percent as of Tuesday noon.

Huang Bin, head of the Chinese Department at the Bangkok-based Kasikorn Research Center, told the Global Times on Wednesday that almost all Chinese NEV brands invested in Thailand in 2023 due to incentives offered by the Thai government. Policies such as the EV3.5 program offer subsidies for the purchase of NEVs and aim to promote Thailand as the regional hub for these vehicles. For foreign investors, support policies include zero tariffs for imported used machine tools.

A reshaping of the global semiconductor supply chain also brought a large number of electronics firms, PCB companies in particular, to invest in Thailand, Huang said.

Huang predicted that the mutual visa exemption policy will boost bilateral trade and investment, though in a gradual fashion.

As China became Thailand's largest source of investment last year, the trend is expected to be maintained in 2024, the expert said.

China emerged as the largest source of foreign direct investment (FDI) applications, contributing 24 percent of FDI by value, with total investment pledges of 97.4 billion baht ($2.84 billion) for 264 projects in the first nine months of 2023, according to The Thailand Board of Investment.

In 2024, Thailand, Vietnam and Indonesia will be the highlight for Chinese overseas direct investment, Lei said.

Editor's Note:
Some observers believe that China-UK relations are at its lowest point, but Alistair Michie, secretary general of the British East Asia Council and winner of the Chinese Friendship Award Medal in 2013, told the Global Times in an exclusive interview that he does not agree with this assessment. Instead, it would be highly desirable for all nations to have golden eras of understanding with China, Michie said, noting that one of the key issues is that a significant number of UK politicians are heavily influenced by the US. He also said that the UK should consider joining the Belt and Road Initiative (BRI) as well as other initiatives that can move both countries in a more positive direction. Global Times reporters Xie Wenting and Bai Yunyi (GT) talked with Michie to get his insightful opinions on China-UK relations, the BRI and more. 

GT: The Chinese version of the book Consensus or Conflict? China and Globalization in the 21st Century co-edited by you has been published recently and distributed in China. Could you tell us why you wanted to compile such a book? What feedback have you received?

Michie: I was motivated to do the book in 2020. What I felt was that at that time, there was an opportunity for the world to gather together and deal with the challenge of the COVID-19 pandemic, in the same way that the world dealt with the global financial crisis in 2008. Back in 2008, the G20 played a particularly crucial role in stabilizing what was a very serious global financial crisis. The way the economic crisis unfolded in 2008 posed extreme danger for the world. So, at the start of 2020, I hoped that the world and nations would gather together in a way that could lead to the development of solutions, where the world would unite toward a common destiny.

I was also greatly influenced by the Chinese leader's repeated calls over many years for the world to move forward with mutual understanding and mutual respect toward a community of common destiny. I believed that the only way to effectively and efficiently address global challenges, such as the COVID-19 pandemic, was through collective action and a shared purpose. 

This motivation laid the foundations for the book. I was pleasantly surprised that we were able to gather over 30 distinguished writers from around the world, who provided their perspectives on why it is crucial for the world to address issues like pandemics through consensus rather than conflict in terms of global matters. This served as the motivation and genesis of the book.

Regarding the feedback, I was particularly pleased that we gathered 10 recommendations from distinguished global leaders, printed in the front of the book. They emphasized the importance of reading this book as it promotes consensus over conflict. These high-level individuals from around the world recognized the crucial theme and message of the book. However, the outcome has been disappointing. Since the English version was published in September 2021, the world has significantly shifted toward conflict and away from consensus. 

GT: Are you disappointed with the direction in which the world is progressing?

Michie: I am deeply frustrated because, since publishing the book with hopes of achieving consensus, the world has instead been steadily moving toward conflict. This is a critical issue for humanity, as there are numerous threats such as climate change, future pandemics, nuclear concerns, challenges in biosciences, and artificial intelligence. These issues require nations to act together in the interest of all humanity, but unfortunately, consensus is lacking. The lack of cooperation is deeply concerning as it can lead to misunderstandings, miscalculations, and catastrophic conflicts. It is a dangerous world. While I find some satisfaction in expressing these views and highlighting the dangers, I am still deeply frustrated by the world's trajectory toward conflict rather than consensus.

By nature, I have always been positive that humanity will find a solution. However, it is also crucial to be realistic. One issue I addressed in my book is the communication crisis our world is facing. Different nations struggle to explain their perspectives, largely due to the fact that we think differently. For instance, China, with nearly 20 percent of the world's population, has a distinct way of thinking compared to America and Europe.

Therefore, the lack of effective communication is causing a crisis in understanding different perspectives and points of view. 

GT: Not long ago, you mentioned that there are many Americans who have closed their minds and turned a blind eye to significant global changes, which is "extremely dangerous" for the world. What specific "significant global changes" do you mean? Could you elaborate on the potential dangers it poses to the world if Americans turned a blind eye to these changes?

Michie: One of the major dangers that the world faces is the way many Americans are thinking today. The US holds a very dominant position in global governance despite only representing 4 percent of the world's population. This massive influence held by a small number of people is frustrating for the rest of the world. Additionally, it is also frustrating that many Americans tend to look inward.

For example, many Americans do not accept that there is a threat and danger from climate change. They are not actively dealing with other serious global threats like nuclear issues, artificial intelligence, or biosciences. This turning inward is extremely dangerous because these are issues that affect all humanity and the world. 

Additionally, we have a situation where the US political system is deeply fractured, and this creates great dangers for the world going forward.

GT: UK Foreign Secretary James Cleverly recently paid a visit to China and he said that it would not be "credible" to disengage with China. However, the British parliament referred to Taiwan as an "independent country" in an official document for the first time, coinciding with Cleverly's visit. What's your perspective on it? In recent years, the UK's attitude toward China has undergone major changes. What do you think are the reasons behind this?

Michie: I think what we need to do is to be very careful about making statements that can cause anger between countries like this one. As I mentioned earlier, we are currently facing a communication crisis, and what we truly need is more dialogue and discussion to foster an intelligent conversation among nations. Fortunately, there are many people in the UK who are working toward creating that environment. However, there are also individuals in the UK who are not interested in engaging in an intelligent dialogue; they have their own agendas. 

One of the issues we face is that a significant number of UK politicians are heavily influenced by the US, which aims to hinder China's progress. On the other hand, there are US politicians who are also striving to build an intelligent dialogue. Nonetheless, this situation is extremely dangerous, particularly given the current communication crisis and social media. It is so easy to have many comments that can be misunderstood and create conflicts and misunderstandings on social media. Therefore, it is crucial to engage in as much dialogue as possible to foster an intelligent conversation among nations.

GT: Do you think the current UK policy toward China is too influenced by Washington?

Michie: I believe that one of the root problems is that the US still wishes to be the hegemonic leader of the world, despite comprising only 4 percent of the global population. It has convinced itself that this is the right path to follow. However, due to many Americans focusing inward and ignoring critical global issues such as climate change and other threats, a significant problem arises for the world.

GT: Some observers have said that China-UK relations are at the lowest point. Do you agree with this? Do you think the bilateral relations can get back to a golden era?

Michie: No, I don't think we're at the lowest point at all because one of the most important trends in the last two decades is the tens of thousands of Chinese students who have come to the UK to study. I think that we rank second or third in the world in terms of attracting Chinese nationals to come and study in our education system. That is the kind of foundation-laying for intelligent dialogue that I have argued is so important in creating the kind of understanding that will lead to consensus.

I am very hopeful that this student exchange will help to create a more peaceful and sustainable world in the future. 

It would be highly desirable for all nations to have golden eras of understanding with China. Unfortunately, at the moment, we are not moving in that direction, but we must do everything in our power to engage in intelligent dialogue and create understanding, so that we can move toward what you describe as a golden era of relationships. This will enable us to address the significant challenges facing humanity.

GT: Many Western politicians have recently been talking about so-called decoupling from China. What's your take on it? Is it possible for the West to decouple from China?

Michie: I believe that decoupling and de-risking are not the right direction. What we must do is focus much more on creating an intelligent dialogue so that we can understand each other better and avoid moving toward conflict. It is absolutely crucial to move away from de-risking and decoupling, as I argue that the fundamental need is to create a much deeper and better understanding. The only way we can solve the crises facing all of humanity is by coming together in consensus and creating mutual understanding and respect, in order to move toward a community of common destiny. That is the only way, but it poses a huge challenge for the world.

GT: This year marks the 10th anniversary of the Belt and Road Initiative (BRI). How do you view the development of the BRI over the past decade and its future prospects?

Michie: I think the Belt and Road Initiative (BRI) has been a hugely important initiative by China because it serves as a channel for creating human connection. Communication can take various forms, such as infrastructure development including roads, airports, and harbors, which facilitate the exchange of ideas and foster understanding. This initiative also promotes intelligent dialogue, and China possesses the expertise to extend these infrastructure developments worldwide.

So, I believe it is a hugely important contribution toward improving global governance. At the moment, global governance faces a challenge as it is dominated by just 14 percent of the global population, which includes 4 percent in the US and under 10 percent in Europe. It is understandable that the rest of the world becomes frustrated when such a small percentage of the world's population holds such a dominant influence. Initiatives like the BRI are a way of striving toward creating a broader form of global governance that can lead us toward international consensus. 

I hope that the BRI will continue to evolve, fostering exchanges and understanding that can truly guide us toward a more peaceful and sustainable world.

GT: Do you think that the UK should consider joining the BRI?

Michie: I believe that everything should be considered in any way forward that we can create in dialogue and understanding, in order to create a world that is moving toward a common destiny. We can only solve the incredibly serious and dangerous challenges that the world faces if we move toward consensus. Initiatives like the BRI should be considered, as well as anything that can move us in a more positive direction.