China’s ambassador to Thailand, Han Zhiqiang, has spoken out against the US trade war, calling it unfair and a form of economic coercion. The US has imposed tariffs on various countries, including Thailand, claiming unfair trade practices. However, Han argues that this approach is not justified, as the US has a significant trade surplus in services with other countries.
A Misguided Approach
The ambassador points out that international trade is based on comparative advantage and mutual benefit. US companies choose to manufacture hard drives in Thailand because of the country’s lower production costs. If the US claims that Thailand has an unfair trade surplus, then it should also acknowledge its own surplus in services trade. In 2024, the US had a $295.2 billion surplus in services trade with other countries. Shouldn’t other countries retaliate against the US for this “unfair” trade practice?
Consequences of Protectionism
Han emphasizes that the US trade war is not about fairness but about using economic power to coerce other countries. This approach undermines the global trading system and threatens the economic well-being of smaller nations. If every country prioritizes its own interests and uses its economic might to pressure others, the world will regress to a state of chaos. The global supply chain is already being disrupted, putting the world economy at risk of a significant downturn.
China’s Stance
Han stresses that China is committed to mutual benefit in its economic relations with the US. Both countries are significant trading partners, and maintaining a stable and sustainable economic relationship is beneficial not only to them but also to the global economy. China does not want a trade war, but it will respond firmly if forced to do so. China has already taken measures to counter US tariffs, protecting its legitimate rights and the global free trade order.
Future Cooperation
Regarding China-Thailand economic cooperation, Han notes that the two countries have a shared future and are important trading partners. Amidst global economic uncertainty, China and Thailand should work together to promote free trade and mutual benefit. They should enhance bilateral trade and industrial chain connectivity while protecting the global trading system. China is committed to expanding its opening-up and sharing development opportunities with other countries, including Thailand.
China welcomes high-quality Thai products into its vast market. The Chinese government will support closer cooperation between local governments, industry associations, and businesses from both countries. Chinese companies in Thailand will be encouraged to utilize the local industrial chain to its full potential, collaborating with Thai SMEs to drive industrial development and promote a digital and green economy transition. By working together, China and Thailand can create a model for mutually beneficial economic cooperation.