Kriengsak Chareonwongsak the World Trade Organization (WTO)

Last year China was the seventh largest exporter in the world, and the eighth biggest importer. Significantly, China is tipped to be one of the few countries that will be able to sustain its economic growth in the short term.

The country's admission into the World Trade Organization (WTO), formalized on November 12, 2001, will unlock a treasure trove of trade opportunities for many regions, including Thailand, while Beijing will play an important role as the representative of developing countries in bargaining on the world trade stage.

Moreover, as China's foreign policy is based on peaceful coexistence, both at home and broad, to ensure economic stability, the country's development is inextricably linked to that of other Asian countries.

This nexus can be seen from the economic crisis that broke in Asia in mid-1997, with Thailand being the first victim. The US alone was not able to assist the country, rather it was left to the International Monetary Fund (IMF) to put together a rescue package. A key element of this was the approximately US$1 billion that came from China.

Further, with regional currencies in a downward spiral, Beijing resisted the temptation to devalue the yuan, which would have placed increased pressure on the competitiveness of exports from Asian countries.

All roads lead to China

Professor Dr Kriengsak Chareonwongsak
Executive Director, Institute of Future Studies for Development (IFD)
kriengsak@kriengsak.com, http://www.ifd.or.th

Kriengsak Chareonwongsak All roads lead to China

All roads lead to China

Professor Dr Kriengsak Chareonwongsak
Executive Director, Institute of Future Studies for Development (IFD)
kriengsak@kriengsak.com, http://www.ifd.or.th

This article was first published in the Bangkok Post on December 16, 2001 after the events of 9-11 when the US was attacked by terrorists causing the US economy to slow down. In this article the author suggested that the Thai government place more importance on trade between Thailand and China because of the high earnings potential of the Chinese economy. Later, in October 2003, the Thai government made its first bilateral agreement on FTA with China. 

The effects of the slowdown in the world economy, exacerbated by the attacks on the United States in September, have been felt in Thailand, which for many years has relied on the US and its partners as major trading allies.

With an upturn in these traditional markets not expected in the short term, and with the benefits of the ASEAN Free Trade Area (AFTA) likely to be limited, Thailand needs to look elsewhere for trading partners on its road to economic recovery.

Right now (2001), one of the most interesting markets is offered by China. With a population of close to 1.2 billion people, it is the biggest in the world, offering a broad economic base with high consumption and production potential.