Thailand’s economy could benefit from a trade war between the United States and China, according to Commerce Minister Pichai Naripthaphan, who remarked on Thursday that the Southeast Asian nation maintains strong relations with both countries and will not have to take sides in the conflict.
With the potential decline in US imports of Chinese goods, Thai products could fill the gap, leading to an increase in Thai exports to the US, he explained to reporters.
“We maintain a good balance between the US and China… both countries appreciate us, so we don’t need to take sides,” said Mr. Pichai, adding that a delegation of American businesses is set to visit Thailand in November.
He expressed optimism regarding future investments from the US, highlighting plans by hard disk manufacturers Seagate and Western Digital to expand their operations in Thailand.
Mr. Pichai also indicated that there is an anticipated influx of new investments from China, the US, and other nations, as they view Thailand as a neutral and friendly player in global geopolitics.
“[Donald] Trump’s victory will be advantageous for Thailand, as Republicans tend to be pro-business, and the ongoing US-China trade war is likely to lead to increased investments from both nations into Thailand,” he remarked.
“Everyone wants to invest in Thailand and use it as a manufacturing hub for exports to other countries.” Following Trump’s recent election win, he has threatened to escalate trade tensions with China by imposing steep tariffs on imports, which could disrupt global trade.
Throughout Trump’s first term, Southeast Asian countries were among the primary beneficiaries of the US-China trade war, as businesses relocated from China to the region to evade punitive tariffs and trade restrictions.
Thailand, a long-standing manufacturing hub for automobiles and electronics, has recently intensified efforts to attract global company investments in order to stimulate growth, which has averaged less than 2% during a decade of military-backed governance.
