Thailand can cash in on US-China trade war, but there’s no gain without pain
- Southeast Asian nation’s closeness to feuding rivals could stand it in good stead if dispute rumbles on next year
- However it is not immune to the economic damage caused by the tariff war
It’s an uneasy time for Asian nations as the rivalry between China and the United States intensifies and it remains uncertain whether they can resolve their trade war when the 90-day truce expires. In this special series the South China Morning Post explores how the China-US rivalry is affecting four countries in Asia. In part three, Laura Villadiego looks at Thailand.
If the trade war between the United States and China escalates, Thailand is poised to enjoy some short-term benefits as companies look to relocate within Asia, but observers have warned that it may also bring economic risks.
“The Thai authorities have yet to come to grips with the trade war”, said Thitinan Pongsudhirak, director of the Institute of Security and International Studies at Chulalongkorn University in Bangkok. “When they start paying attention to it in earnest, they will find Thailand in good stead because it is very close to China while being a US treaty ally.”
Thailand has historically been one of America’s main allies in Asia, especially after the second world war. This good relationship translated into thriving economic exchanges and today the US is the second largest destination for Thai exports.
At the start of the 21st century, though, Bangkok reoriented its foreign policy towards China, which became the main destination for Thai exports in 2010.
The military junta that took power in a coup d’état in May 2014 strengthened the country’s ties to China, even though this relationship has not always been smooth.
