China’s role in Thai trade
China, considered a pivotal trading partner for Thailand, is a primary source of imports and the second-largest destination for exports. However, Thailand has grappled with a consistent trade deficit with China over recent years. In 2023, this trade deficit reached 1.29 trillion baht, reflecting a slight increase of 0.1% compared to 2022.
As Thailand confronts economic challenges, attention is drawn to the slower expansion of the Chinese economy. Despite ongoing growth, the pace has decelerated, with a projected expansion of about 4-5%. Wisit Limluecha, vice chair of the Thai Chamber of Commerce and president of the Thai Future Food Trade Association, said China continues to face challenges due to weak private consumption and investment. He said the inflation rate in China was of particular concern. He pointed out that it had hit its highest level in 14 years, dropping by 0.3% since 2009. China’s annual exports also declined for the first time since 2015, while the GDP growth stood at 5.2% in the fourth quarter of 2023.
Another cause of concern, Wisit said, was the “GDP deflator”, which has consistently contracted for three consecutive quarters, indicating that China’s economy is sluggish, and the risk of deflation persists.
