CP Group confident in China's economy

The seminar titled "China's Economy at the Crossroads: Opportunities for Thai Entrepreneurs" was held yesterday (September 11) with the aim of presenting the economic prospects in China to Thai entrepreneurs.

Thanakorn, who is the president of the Thai-Chinese Investment and Trade Association, told participants that CP Group began venturing into business in China around 1980 just as the country was beginning to open up. At that time, China was primarily agriculture-based, so there were opportunities for trade.

Over the past 40 years, CP Group has witnessed significant transformations in the country and has been particularly impressed by its focus on technological advancement.

After opening up, China initially emphasised any business that brought in foreign currency, such as importing raw materials. Later, it introduced measures to attract foreign investment and allow the Chinese people to learn technology. In 1989, they invited large companies like Volkswagen to invest in Shenzhen, which led to China becoming the world's leading car manufacturer, Thanakorn explained.

Furthermore, China adopted strategies to acquire businesses that would allow it to absorb the "know-how" of successful industries. For instance, they purchased MG Rover, a British car manufacturer, to establish a global research and development centre in the country, Thanakorn said.

Recognising that the automotive industry already has leaders, China turned its attention to electric vehicles (EVs). They initiated the strategy of changing lanes to invest in electric vehicles, starting with the domestic market.

This shift is part of their strategy to outpace European car technology. A Chinese saying, “Change lanes to overtake”, exemplifies the shift towards investing in electric vehicles (EVs) to replace internal combustion engine vehicles, Thanakorn added.

At a recent business conference in Hainan, three industries in which China is seeking investment were highlighted. These are clean energy technology, including solar cells, wind energy, and energy storage technology; processed and ready-to-eat foods, a sector in which Thai food brands have significant opportunities; and the service industry, especially tourism-related businesses like hotels and airlines, to support the creation of new cities.

Despite China's economic growth rate being lower in recent years, the country's current economy is immense and continues to expand slowly. There is plenty of potential for Thai entrepreneurs to do business with China, especially in consumer goods, food, and clean energy- related businesses, Thanakorn said.

Moreover, there's an opportunity for Chinese manufacturers to use Thailand as a production base, particularly in the Eastern Economic Corridor (EEC), which serves as an investment platform for China's new-era industries, including EVs, new materials, robotics, e-commerce, AI, and biotechnology, Thanakorn added.