Analyzing Intra-Industry trade between Thailand and China: A case study on Agricultural sector

Abstract

In the process of regional strategic cooperation on a global scale, agricultural trade cooperation is very crucial in foreign trade, China and Thailand occupy an important position in the international market, and both sides maintain close trade relationship. China is Thailand's top partner in agricultural trade, and Thailand is China's second largest agricultural import trade partner in ASEAN. The two countries are similar in terms of basic national conditions, industrial trade structure and agricultural export markets. Agriculture, as one of the important foreign exchange-generating industries for both sides, plays an important role in their economies development, also expanding agricultural exports has become an important element in promoting sustainable economic development.

Since 1975, when China and Thailand established formal diplomatic relation, the agricultural trade between the two countries has been on a growing trend. In 2010, after the China-ASEAN free trade agreement was formally reached, the trade relations between Thailand and China developed rapidly, providing a strategic basis for further strengthening bilateral economic and trade cooperation, of which the agricultural trade undoubtedly occupies a key position.

This paper uses the relevant trade theory and economic index to study the current situation of agricultural product trade between China and Thailand, also analyzes the affecting factors by using the gravity model. Explore the opportunities and challenges of agricultural trade development between China and Thailand, hoping to increase the depth and breadth of agricultural trade cooperation between Thailand and China, and promote mutual benefits in bilateral trade.