Thailand is moving to strengthen its economic partnership with China, focusing on collaboration in semiconductor manufacturing and battery production, Prime Minister Anutin Charnvirakul announced on Friday. The initiative comes as the government prepares to roll out a series of stimulus measures aimed at revitalizing an economy facing headwinds from high household debt, subdued domestic demand, and external pressures such as U.S. tariffs and a rapidly appreciating currency.
The Thai baht recently hit a four-year high against the U.S. dollar, creating challenges for exporters. In response, economic agencies are evaluating policy options to stabilize the exchange rate. Fitch Ratings downgraded Thailand’s economic outlook to ‘negative’ earlier in the week, citing fiscal risks amid political instability.
At the Thailand-China Cooperation Expo in Bangkok, Anutin emphasized efforts to reduce regulatory barriers to foster mutual business expansion. He described Thailand not only as a strategic partner for China but also as a regional gateway for broader economic integration.
Thailand has increasingly become a key transshipment point and has attracted substantial Chinese investment, particularly in the electric vehicle sector. China remains Thailand’s top source of imports, with $80 billion in goods—accounting for 26.3% of Thailand’s total imports—flowing in last year.
In a bid to revive tourism, the country aims to welcome up to 2 million visitors from China within the next four months. Meanwhile, the new administration is set to present its policy agenda to parliament on September 29 and 30.
To stimulate economic activity, the government will fast-track measures to improve liquidity, ease household debt burdens, and resolve energy supply constraints. A newly announced co-payment program worth 47 billion baht ($1.46 billion) will see the state cover up to 60% of the cost of essential food and consumer items for eligible citizens.
Deputy Finance Minister Vorapak Tanyawong stated that the government has set a four-month timeline to deliver visible improvements in economic conditions.
Despite growing at only 2.5% in 2024, trailing some regional neighbors, Thailand’s economy is forecast to expand between 1.8% and 2.3% in 2025, according to the national planning agency. However, a further slowdown is expected in the second half of the year due to the impact of American trade policies.
— news from Reuters
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Thailand to step up China cooperation, lines up economic stimulus
BANGKOK, Sept 26 (Reuters) – Thailand will deepen cooperation with China, including in areas like semiconductors and battery production, Thai prime minister Anutin Charnvirakul said on Friday, as his new government lined up measures to fire up a sluggish economy. n nSoutheast Asia ‘s second-largest economy has been struggling with high household debt, weak consumption, the impact of U.S. tariffs and, in recent weeks, a soaring baht , with the currency reaching a four-year high against the dollar. n nSign up here. n nRatings agency Fitch on Wednesday revised Thailand ‘s economic outlook to “negative” from “stable”, citing increasing risks to its public finances amid ongoing political uncertainty. n n”We will move forward in reducing barriers and regulations so businesses of both countries can grow together,” Anutin said in a speech at the Thailand China Cooperation Expo in Bangkok. n n”Thailand will prove that we are more than a strategic economic partner, but a gateway to regional cooperation,” he said. n nThailand has emerged as a major transshipment hub in recent years, while also drawing large Chinese investments in sectors like electric vehicles. n nChina is the largest import market for Thailand, which shipped in Chinese goods worth $80 billion last year, amounting to 26.3% of the total. n nThailand ‘s tourism ministry also said on Friday that it would aim to attract as many as 2 million tourists from China over the next four months. n nAnutin ‘s administration will deliver its policy statement to parliament on September 29 and 30, marking the start of the new administration, but the contours of its broad plans have already been made public. n nThe government will accelerate economic stimulus measures to boost liquidity, reduce debt, and address energy supply issues. n nIt will also launch a 47 billion baht ($1.46 billion) co-payment scheme, ministers said on Friday, in which the government will subsidise up to 60% of the costs of certain food and consumer goods purchased by qualified Thai citizens. n n”The government has a four-month timeline and is striving to bring light to the end of the tunnel for the economy by accelerating economic stimulus measures,” Deputy Finance Minister Vorapak Tanyawong said. n nThe strong baht is impacting the country ‘s exporters, and economic agencies are looking to address the issue, Commerce Minister Suphajee Suthumpun said. n nAfter lagging regional peers with growth of 2.5% in 2024, the economy is projected to expand by 1.8% to 2.3% this year, according to the state planning agency, with a slowdown expected in the second half of 2025 because of U.S. tariffs. n n($1 = 32.21 baht) n nReporting by Kitiphong Thaichareon, Thanadech Staporncharnchai, Panarat Thepgumpanat and Chayut Setboonsarng, Writing by Orathai Sriring; Editing by David Stanway