Economists advise Thailand to adapt to global geopolitical conflicts amid China-US conflict
Mr. Danucha Pichayanan, Secretary-General of the National Economic and Social Development Council, said at the seminar ‘Changing Global Geopolitics, Counting to Thailand’ that conflicts in many countries around the world have increased in level, increased risks, led to crises and wars, and have begun to spread and affect many countries, including the election results in the United States, which inevitably affects Thailand. When the United States has blocked trade with China, it has accepted the Russia-Ukraine war, fertilizer prices have increased by 35-40 percent, and shipping rates have increased, causing Thai export prices to increase.
The world economy currently depends on the United States, China, and Europe. The trade war has developed into a technological war. There is technology protection and IT design. When China owns important mineral resources in the production of semiconductors, electric vehicles, and digital platforms, there is a competition for experts through visas, taxation, and other forms of personnel development. Thailand must be prepared to handle such problems by upgrading production in every food supply chain, supporting unexpected events in the future, by focusing on developing new-age agricultural products, dealing with trade barriers between powers, affecting Thai investment and exports, and strengthening the close relationship of the ASEAN group.
Thailand is facing a high challenge. The world stage is full of increasingly intense conflicts. Therefore, we must attract investment to Thailand, create high-tech industries, develop highly skilled labor, maintain food security, and support the needs of the people in the country. We must plan production in the long term by upgrading modern agriculture and strategically positioning our international policies. We recommend adding 10 billion baht to the fund to increase the country’s competitiveness for target industries to upgrade Thai entrepreneurs and attract Thai children with potential to work abroad to develop Thailand.
Mr. Suphawit Saicheua, Chairman of the National Economic and Social Development Council, said that the world order is changing. The US economy still plays an important role in the world economy, accounting for 1 in 4 of the world’s GDP, while China’s accounted for 6.7 percent of the world’s GDP in 1990, increasing to 16.9 percent in 2023. Currently, China produces electronic products, electric vehicles, chemicals, and high-tech products. However, the demand for Chinese products is not enough, so it has to export to foreign countries by finding countries to connect to large groups of countries, such as connecting to Hungary, hoping to export to the European group, connecting to Mexico, hoping to export to South America, connecting to Singapore, Vietnam, to be a hub for sending to ASEAN. For Thailand, when China reduces agricultural exports, it is an opportunity for Thailand to export agricultural products to China. We have to wait and see who wins the US election to see if Trump’s economic policy will tax asse
ts. If Trump wins the election, it may affect Thailand. He also warned that the US’s policy interest rate, if it is as high as 5 percent, will have a significant impact on Thailand.
Mr. Benyarong Suwannakiri, Deputy Managing Director of Export-Import Bank of Thailand, said that China has set a long-term national development plan for the next 30 years, declaring it a modern society country in 2049. During this period, China is still developing its economy in various aspects. As ASEAN is a group of countries supporting trade and investment, China aims to connect with Singapore, ranked number 1, and Indonesia, ranked number 2. Thailand must therefore take this opportunity to support trade and investment from China. Thailand must have a clear selling point. Thailand has a strong point of the Stock Exchange of Thailand taking care of ESG issues, with 80 percent of consumers willing to pay more to buy products that support sustainability. The digital and innovative product group has grown from 16 percent in 2024 to 12.5 percent in 2025. Consumers want to use AI for trading, accounting for 3 out of 5. Thailand must therefore take this opportunity to adjust its position and selling points in the
face of geopolitical issues.
Mr. Dulyapak Preecharat, President of the Association of Regional Studies and Lecturer in Southeast Asia at Thammasat University, said that during the geopolitical problems of the superpowers, it is recommended that 1. Thailand remain neutral in a flexible and constructive manner, aiming to approach any superpower without choosing sides. 2. A policy of strengthening the outer core, adjusting so that Thailand can survive by expanding its power, using a proactive foreign policy, having a neutral status, and balancing in some matters to make the superpowers fearful.
3. Policy to promote Thailand to be the center of the continent and the sea area of ??ASEAN. Thailand has the most suitable location in the Malay Peninsula. It should protect the trade and investment benefits of the Andaman Sea, the Gulf of Thailand, and connect to the Pacific. Thailand’s solution is to have a more proactive foreign policy.
Source: Thai News Agency