# Expanding Strategic Influence: The Surge of Chinese Investments in Thailand

- Link: https://www.thailand-business-news.com/china/193532-expanding-strategic-influence-the-surge-of-chinese-investments-in-thailand
- Published: 2025-02-11T06:08:00+07:00
- Author: Bastien Guillemain

According to the Thai Board of Investment (BOI), in 2023, China became the primary
source of Foreign Direct Investments (FDI) in Thailand. Over the first three quarters
of the year, nearly US$2.84 billion was invested across 264 projects, accounting
for 24% of Thailand’s total FDI. Over the past two years, China has submitted 588
investment projects totaling US$7 billion.

The relationship between China and Thailand is strategic. China is Thailand’s main
trading partner, absorbing 40% of its agricultural exports. On its part, Thailand
ranks as China’s third-largest trading partner within ASEAN.

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China and Thailand share a strong economic partnership, with bilateral trade hitting
$126.3 billion in 2023. A major highlight of their cooperation is the ambitious 
transcontinental railway project, aimed at linking the Indochina Peninsula to the
Strait of Malacca. This initiative promises to enhance regional connectivity and
stimulate tourism growth.

As Thailand’s Ministry of Foreign Affairs announced in 2024 its intention to join
the BRICS economic cooperation league, the country aims to attract more foreign 
investments to strengthen its economy and contribute to key sectors, particularly
green energy and electric vehicles (EVs). Thailand seeks to integrate into the global
value chain and position itself as a leading player in Asia and the world.

The two countries signed a strategic cooperation agreement in 2013 to foster economic
ties. Thailand supports China’s Belt and Road Initiative, which facilitates trade
and mobility, as tourism and exports make up the largest share of the Thai economy.

Against this backdrop, Chinese investments have grown significantly, mainly in EVs,
the digital economy, and the manufacturing industry.

## Why invest in Thailand?

### A strategic region

Thailand holds a key position in Southeast Asia. As a central member of ASEAN (the
Association of Southeast Asian Nations), a regional organization promoting economic,
political, and cultural cooperation, Thailand boasts strong infrastructure and attractive
investment policies. China, seeking to solidify its leadership in Asia, views Thailand
as a strategic ally.

China’s interest in Thailand is also underscored by the Belt and Road Initiative(
BRI), which aims to enhance regional connectivity and economic integration. Key 
projects, such as the high-speed rail link connecting China to Thailand via Laos,
highlight the deepening economic ties between the two nations. Beyond economics,
cultural and diplomatic exchanges have further strengthened their bilateral relationship,
with both countries emphasizing mutual respect and shared development goals.

### Investor-friendly policies

In December 2024, Thailand’s Industrial Estate Authority (IEAT) announced a new 
initiative to attract Chinese investors. Named “Two Countries, Twin Parks,” the 
initiative aims to make Thailand a key destination for Chinese investments by facilitating
exchanges, according to Minister of Industry Akanat Promphan. This measure builds
on previous agreements that have already eased investment procedures and reduced
trade barriers between the two countries.

The “Two Countries, Twin Parks” initiative is expected to strengthen economic ties
between Thailand and China, fostering collaboration in sectors such as manufacturing,
technology, and logistics. According to officials, the program will include the 
development of industrial zones designed to cater specifically to Chinese enterprises,
offering streamlined services, tax incentives, and infrastructure tailored to their
needs. Minister Akanat Promphan emphasized that this initiative aligns with Thailand’s
broader economic strategy to position itself as a regional hub for international
trade and investment.

## The Automotive Industry: A Comprehensive Example

The Thai government aims to establish the country as a regional hub for EV production.
The “30@30” initiative targets having EVs make up 30% of total vehicle production
by 2030, with goals of producing 725,000 zero-emission cars, 675,000 electric scooters,
and 24,000 electric buses.

The government also encourages Thai consumers to purchase EVs. Currently, 80% of
EVs sold in Thailand are Chinese brands.

The “30@30” policy includes subsidies and tax reductions that attract investors,
manufacturers, and suppliers in the electric vehicle industry. Research and Development(
R&D) funding allows Thailand to maintain its competitive edge and establish itself
as a leader in the sector.

[Some Chinese car manufacturers have already set up operations in Thailand](https://www.thailand-business-news.com/china/142274-chinese-automakers-are-ramping-up-electric-vehicle-production-in-thailand?swcfpc=1).
BYD and Great Wall Motor have invested nearly US$1.5 billion to build factories 
in the country. Meanwhile, the Chinese company CATARC has opened an R&D facility.

Thailand’s appeal to Chinese investors in the EV sector is driven by financial incentives,
infrastructure, a skilled workforce, and a deep understanding of the industry, allowing
it to integrate all stages of the production and supply chain, including battery
manufacturing.

## Diverse investment sectors

The Thai Board of Investment recently announced that TikTok, owned by [Chinese company ByteDance, plans to invest 126.8 billion baht in Thailand](https://www.thailand-business-news.com/social-media/tiktok/192384-tiktok-plans-to-invest-126-8-billion-baht-3-76-billion-in-thailand-to-establish-a-data-hosting-service)
for a data hosting project. This announcement follows major investment commitments
from leading American tech companies, such as Google (US$1 billion), Amazon Web 
Services (US$5 billion over 15 years), and Microsoft, which is building its first
regional data center in Thailand. As Thailand becomes a strategic hub for the digital
economy, it is also attracting significant Chinese investments in this sector.

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Many other industries benefit from Chinese investments. In 2024, the Eastern Economic
Corridor (EEC) met with a delegation of Chinese entrepreneurs to explore opportunities
for Sino-Thai cooperation in green infrastructure, including solar farms and energy
storage systems.

China is also investing in Thailand’s tourism sector. Chinese investments in hospitality
and dining help strengthen ties between the two countries, boosting Thailand’s economy
by improving services and infrastructure, which attracts a larger influx of tourists.

## Impact on the Thai economy

Chinese investments contribute to job creation. The entry of Chinese companies into
the Thai market fosters the recruitment of skilled labor, the development of expertise,
and the transfer and creation of technological knowledge in future-oriented industries.

By leveraging its strategic location in Southeast Asia, Thailand aims to attract
not only Chinese investors but also global businesses seeking access to ASEAN markets.
Analysts predict that this partnership could significantly boost bilateral trade
volumes and create new opportunities for local industries to integrate into global
supply chains. The Thai government has also hinted at plans to expand similar initiatives
with other key trading partners, signaling its commitment to fostering a more open
and dynamic investment environment.

However, Thai businesses must adapt to competition from new entrants benefiting 
from advanced technology and lower production costs. They need to adjust by collaborating
with these new players and establishing business relationships.

It is also the Thai government’s responsibility to ensure that opening its economy
and infrastructure to China remains beneficial, allowing Thailand to assert its 
influence in the Asia-Pacific region.

However, some Thai analysts are wary of China’s rising influence, fearing that Thailand
might become overly dependent on China. Despite these concerns, the Thai government
remains bullish on Chinese investments, seeing them as a vital component of the 
country’s economic growth strategy.

Sources: 

> [TikTok plans to invest 126.8 billion baht ($3.76 billion) in Thailand to establish a data hosting service](https://www.thailand-business-news.com/social-media/tiktok/192384-tiktok-plans-to-invest-126-8-billion-baht-3-76-billion-in-thailand-to-establish-a-data-hosting-service)

[Bangkok Post – IEAT unveils plan to attract Chinese investment to Thailand](https://www.bangkokpost.com/business/general/2918961/ieat-unveils-plan-to-attract-chinese-investment-to-thailand)

[China-Thailand Economic Ties and Expanding Opportunities](https://www.china-briefing.com/news/china-thailand-economic-ties-trade-and-investment-opportunities)

[https://www.eeco.or.th/en/news/1760](https://www.eeco.or.th/en/news/1760)