China-Thailand Trade and Investment Relations: A Legal Perspective Analysis

Abstract

This article comparatively analyzes the legal frameworks governing market access for foreign investments in China and Thailand, providing an in-depth exploration of the bilateral trade and investment relationship. As a pivotal aspect of trade and investment interactions, the legal mechanisms for foreign investment access significantly influence the depth and breadth of economic cooperation between the two nations. While the broader title addresses overall trade and investment relations, the study specifically focuses on legal differences and harmonization in the field of foreign investment access to effectively support bilateral economic collaboration. Both countries employ negative lists for foreign investment market access aimed at safeguarding national security and economic interests, thereby enhancing transparency and convenience for foreign investors (Jiranyakul, 2013). China has continuously improved its foreign investment environment by progressively shortening its negative list and relaxing restrictions, particularly in high-tech sectors and emerging industries. Thailand, on the other hand, operates a dual-track system wherein the Foreign Business Act outlines a negative list regime parallel to promotional investment incentives. Through a comparative study of these two countries’ foreign investment access systems, the paper highlights differences in policy orientation, sectoral limitations, encouraged sectors for foreign investment, management of negative lists, and the degree of openness in the services industry. Furthermore, the paper proposes recommendations for optimizing future foreign investment access policies in both nations, including alignment with regional economic development plans, identification of new investment opportunities, and fostering regional cooperation and coordination. These suggestions aim to provide guidance for foreign investors in making informed decisions in China and Thailand, thereby promoting thriving bilateral trade and investment.