Key facts
- 51% of polled Chinese firms are interested in expanding into Thailand.
- 80% of 380 surveyed Chinese companies plan overseas expansion in the next three years.
- China's trade with ASEAN reached $643.2 billion in the first six months of the year.
Chinese companies are increasingly looking to expand their operations into neighboring economies, with Thailand emerging as a key destination. A report by UOB found that 51% of surveyed Chinese firms are interested in expanding into Thailand, a significant increase from the previous year. This trend is part of a broader strategy by Chinese businesses to seek new markets amid narrowing domestic profits and expanding production capacity. The Association of Southeast Asian Nations (ASEAN) continues to be the primary choice for these outbound investments, supported by robust trade ties, which saw China's trade value with ASEAN surge 18.2% year-on-year to $643.2 billion in the first half of the year. While Malaysia has attracted significant interest, particularly from new energy companies, and Singapore serves as a hub for regional headquarters and R&D, Thailand is becoming a crucial gateway for Chinese retailers and new energy vehicle manufacturers. These companies are not only exporting products but also technologies, skills, and entire industrial supply chains, indicating a shift towards a full-ecosystem approach to global expansion.