Take advantage of China's growing role, experts advise

At a seminar called "Development of China: The Implication for Thailand", held at Chulalongkorn University, speakers said China would continue its robust growth while benefiting the global economy.

Thailand should also gain as it increases trade and investment with the mainland, they said.

China's Ambassador Zhang Jiu Huan said his government would tighten trade relations with the Kingdom as a new government takes over.

"We believes trade and economic cooperation by both nations will continue to grow. Our governments will also resolve trade differences under the Asean-China Free Trade Agreement to boost trade and investment," Zhang said.

Two-way trade with China exceeded US$34.6 billion (Bt1.14 trillion), an increase of 20.7 per cent from last year, while investment value topped $150 million.

Zhang said China would try to keep growth at no more than 10 per cent this year to ensure sustainable development as it stimulates global growth as well.

China does not want to see high expansion as overheating could bring negative effects.

China will continue to boost growth based on quality development at a stable pace, he added.

Its growth peaked at 11.4 per cent last year, higher than official forecasts.

Sompop Manarangsan, director of Institute of Asian Studies at Chulalongkorn University, said China's strong economy would offset a global slowdown caused by a US slump.

He urged Thailand and local investors to speed up trade and investment with China and serve as a growth engine for the global economy.

Thailand will face two challenges coming from China, the first being an adjustment in mainland stock prices that could hurt centres like Hong Kong, while the second danger is a collapse of high property prices.

China expects to increase GDP to $5 trillion by 2020 and raise its per capita income tenfold from the current $2,600.

Chen Xi Wen, deputy director of the Office of the Central Financial Work Leading Group, said despite its strong growth China faced wide imbalances between urban and rural regions.

With the new policies, China will focus more on sustainable development, including conserving energy and natural resources, environmental protection and wealth inequality.

He said China favoured a moderate growth rate of about 8-9 per cent as it believed that was sufficient to ensure a stable economy.

Petchanet Pratruangkrai

The Nation