Import / Export Relations between China and Thailand
Important flows guided by a free trade agreement
Import / Export flows between China and Thailand are growing steadily from year to year. These two countries have good relations; culturally speaking, it is estimated that between one-third and one-half of Thai people would have Chinese origins. The ties between the two countries have tightened even more since the 2014 coup, with Thailand more or less diverting from the United States. China is the first economic partner of the ASEAN (Association of Southeast Asian Nations).
A Framework Agreement between the People’s Republic of China (PRC) and the ASEAN Kingdom entered into force in 2003 to promote comprehensive economic cooperation. Indeed, it was decided that a free trade area would be established within 10 years.
The main points of this agreement are:
– The elimination of tariff and non-tariff barriers on international trade in products,
– The liberalization of international trade in services
– Foreign direct investment
– Simplification of customs procedures and
– Mutual recognition agreements.
The ASEAN-China Free Trade Area is the third largest free trade area in the world, and here are some important points:
1. 1.9 billion people (30% of the world’s population)
2. GDP: $ 2 billion
3. International trade: $ 1.1 billion
4. International trade as a whole will increase by 38.9%
5. Imports and exports are expected to increase by 50%
6. Five ASEAN countries are China’s largest trading partners
7. China is the third largest source of imports from ASEAN (Association of Southeast Asian Nations)
B- An agreement favoring the activity of Chinese seaports
China-ASEAN free trade agreement signed in January 2007 entered into force on 1 July 2007. China’s foreign direct investment (FDI) ASEAN. In addition, the ASEAN-China Free Trade Agreement (ASEAN-China) free trade agreement will be applied by the LAC countries of the Association of Southeast Asian Nations (Cambodia, Laos, Myanmar and Vietnam) on 1 January 2015.
China relies on several major ports to keep this maritime activity in constant evolution. Indeed, China has more than 2,000 ports, 130 of which are open to foreign ships. China has 16 major seaports with a capacity of more than 50 million tons per year. Among these, the port of Ningbo-Zhoushan is located in Zhejiang Province, on the East China Sea coast, south of Hangzhou Bay.
The port authority announced a total traffic of 399.250 million tons of goods, including 53.32 Mt of iron ore and 53.86 Mt of crude oil. In 2014, the increase in container traffic enabled the Ningbo-Zhoushan port to surpass that of Busan to become the fifth largest in the world. In 2016, it becomes the world’s largest cargo port (over 900 million tonnes). This port is also known to have as its specialty the transport of furniture of any kind.
There is also the port of Shenzhen which is one of the busiest ports and is experiencing the fastest growth in mainland China in the south. Located in the southern region of the Pearl River Delta, in Guangdong Province, it is the economic hinterland for Hong Kong’s commercial activity with mainland China, and also one of the major ports in terms of Of China’s international trade. The port of Shenzhen is known to be specialized in electronic commerce, a development mainly due to the American giants such as Apple, Dell or HP who make there for example manufacture the bulk of their devices. Although in the area, it is Foxconn who remains the king of the city.
A final example, and not the least, is the port of Guangzhou (also known as Canton) which is currently the largest multi-purpose port in southern China. Indeed, it trade with 300 other ports. It is also very important for economy and transportation in the Pearl River Delta and in its province, Guangdong. This important traffic is largely due to the Canton Fair, which takes place twice a year (spring and autumn); the next edition (122nd edition) is scheduled from 15 October until 15 November. This huge fair is co-sponsored by the Ministry of Commerce and the People’s Government of Guangdong, while China’s Foreign Trade Center is in charge of the organization. This event welcomes exhibitors in an area of 20,000 m² which will present products of all kinds:
Electronic products and appliances, Building materials and hardware; Mechanism and installations, but also food and beverage products, household items and textiles.