Deepening our trade ties with China
In January, China became the single largest export market for Thailand, accounting for 12.6 per cent of all outbound shipments and moving ahead of the US. Now the Commerce Ministry is seeking to use China as a springboard to other markets, such as Russia, Eastern Europe and Western Europe.
This fits in nicely with China’s Belt and Road and Russia’s Eurasian Economic Union – two closely aligned initiatives which will improve connectivity and open markets in the countries along the routes. For Thailand, this represents a good opportunity as many of these countries are emerging markets with good potential for Thai products such as consumer goods, food, steel, garments, furniture and beds, sugar, paper and crafts, fish and seafood products
The Commerce Ministry is also seeking to increase trade with China by targeting economically important cities.
One city that fits this criterion is Tianjin, to which Commerce Minister Apiradi will lead a trade mission in May. Tianjin, which is 120 kilometres southeast of Beijing, is the third busiest port in China, as well as one of its fastest-growing cities.
The city has a population of nearly 16 million and the economy has been growing by 12 per cent a year. Every time I go to Tianjin, I see major changes. On my most recent visit, I noticed that the Goldin Finance 117 building is almost complete. At 596.5 metres and with 117 stories it will be the fifth highest building in the world and the third highest in China.
In a move somewhat like the Thai government’s plans for the Eastern Economic Corridor, the Chinese government in 2015 developed a fast-track economic plan for the Bohai Economic Rim alongside the Bohai Sea, which includes Beijing, Tianjin, Hebei and Shandong Peninsula. As mentioned in previous columns, Tianjin municipality was earmarked as a national research and development base for the advanced manufacturing industry, a shipping hub for northern China, a demonstration area for financial innovation, and an experimental area for further reforms.
Given its advanced levels of manufacturing, high levels of connectivity and rapid growth, I am therefore pleased that commercial ties between Thailand and Tianjin are growing, such as the recent partnership between Tianjin Saixiang Technology, a machinery company based in Tianjin and Huayi, a Shanghai tyre manufacturer, to build a truck and tyre plant in Rayong.
Until now, Thailand’s trade and investment in China has focused on the south, which is not surprising since this is the closest region to Thailand. However, given the high potential of other parts of the country, including Tianjin, it makes sense to deepen ties and so Minister Apiradi’s trip is most timely.
