Thailand's widening trade deficit with China reflects structural problems in Thai exports (Business Brief No.4048)

• Thailand has always sustained a trade deficit with China. As of the end of 2023, Thailand's trade deficit with China reached a record high of USD36.6 billion.
• Thailand’s important products that have sustained trade deficit with China include machinery, electrical equipment, and products in the automotive category. Meanwhile, Thai fresh fruits, rubber and wood products have enjoyed trade surplus with China.
• It is expected that Thailand’s trade deficit with China will widen. This reflects structural problems in Thai exports as Thailand does not have new industries that can drive its exports ahead.