C) Economic Affairs

January 5 The World Bank forecasts that the world economy will grow by 4 percent this year. The outlook remains uncertain. The global recovery will be worsened if the pandemic accelerates or the inoculation is delayed. The Chinese economy will expand by 7.9 percent this year.

January 8 (1)The central banks of Thailand and China have renewed bilateral currency swap arrangements for 5 years, starting from December 22, 2020.

(2) The IMF projects China's economy to grow by 7.9 percent this year as the domestic Covid-19 outbreaks remain under control and economic activity has become normal.

January 10 (1)China and Myanmar signed a memorandum of understanding (MoU) to conduct a feasibility study of the Mandalay-Kyaukphyu railway, according to the Chinese embassy in Myanmar.

(2)China’s State Council Information Office issues a white paper entitled “China’s International Development Cooperation in the New Era.” It explains China’s views on international development cooperation in the new era, actions, and plans for the future.

January 14 (1)China’s General Administration of Customs (GAC) reports that the country’s foreign trade grew 1.9 percent year on year in 2020. Exports increased 4 percent year on year, while imports declined 0.7 percent. ASEAN becomes China’s largest trading partner for the first time in 2020. The trade volumes reached US$731.9 billion, an increase of 7 percent year on year. China’s top 5 trading partners are ASEAN, the EU, the US, Japan, and South Korea. Trade with economies related to the BRI grew 1 percent year on year.

(2)Thailand's National Tourism Policy Committee approves the proposal of the Tourism and Sports Ministry to collect a 300-baht fee from every tourist

entering the country. The fee will support the management and development of tourism and insurance for foreign travelers during their stay in the country.

(3)China Eastern Yunnan Airlines resumes an air route between Kunming, Yunnan Province, and Bangkok after almost a year of suspension due to the pandemic.

January 18 China’s National Bureau of Statistics reports that the country’s economy grew by 2.3 percent in 2020. The annual GDP was US$15.66 trillion. It grew at the slowest pace in more than 40 years in 2020. However, China’s economy is expected to be the world’s only major economy to achieve positive growth in 2020.

January 20 (1)China’s foreign direct investment (FDI) increased 6.2 percent year on year to reach US$144.37 billion in 2020, according to the Ministry of Commerce. Investment from ASEAN to China grew 0.7 percent.

(2)The Guangdong Customs reports that the trade volume with ASEAN was up 6.5 percent year on year in 2020. ASEAN has replaced Hong Kong as the largest trading partner of Guangdong Province.

(3)Chongqing Municipality's foreign trade grew by 12.5 percent year on year in 2020, worth about US$100.7 billion. ASEAN remains Chongqing's largest trading partner. The trade with ASEAN increased by 3.4 percent. The top 3 of Chongqing's trading partners in ASEAN are Vietnam, Malaysia, and Thailand.

January 22 (1)Thailand’s Ministry of Commerce forecasts that the country’s exports will rise 4 percent this year due to rising global demand, vaccine distribution, and stimulus measures in many countries.

(2)Nanning Customs reports that foreign trade in Guangxi Zhuang Autonomous Region was up 3.5 percent year on year in 2020 to reach US$75.22

billion. Exports grew by 4.3 percent, while imports increased by 2.6 percent. Guangxi's 3 largest trading partners are ASEAN, Brazil, and Hong Kong.

January 25 President Xi Jinping attends the World Economic Forum Virtual Event of the Davos Agenda and delivers a speech via a videoconference. He emphasizes the global community to uphold multilateralism. The 4 major tasks are to step up macroeconomic policy coordination, abandon ideological prejudice, close the divide between developed and developing countries, and come together against global challenges.

January 26 The IMF forecasts global economic growth at 5.5 percent this year, according to the World Economic Outlook (WEO). China's economy will grow 8.8 percent.

February 3 (1)Thailand's Joint Standing Committee on Commerce, Industry, and Banking (JSCCID) forecasts that the economy will grow 1.5-3.5 percent this year. Exports will grow by 3-5 percent. The economy in the first quarter will be challenged by the pandemic.

(2)Renminbi (RMB) is the largest cross-border payment currency between Guangxi Zhuang Autonomous Region and ASEAN in 2020, according to the Nanning Central Sub-branch of the People’s Bank of China (PBC). The total cross-border RMB settlement between the two sides was 68.1 billion yuan, accounting for 60 percent of the domestic and foreign currency cross-border income and expenditure.

February 4 China is researching information about the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to consider for joining the pact. However, China is ready for enhancing technical communication and exchanges with CPTPP members, according to Chinese Commerce Ministry Spokesperson Gao Feng.

February 5 China-ASEAN Business Council and 75 business associations issue the Chinese Business Community

Initiative to promote business cooperation under the RCEP framework and call on companies and associations to strengthen industrial cooperation, promote trade and investment, and seek opportunities from the RCEP.

February 7 Kunming Customs reports that Yunnan’s foreign trade rose 15.4 percent year on year in 2020. Exports increased 46.4 percent year on year, while imports decreased 9.7 percent. ASEAN is Yunnan’s largest trading partner with foreign trade growing up 7.6 percent year on year.

February 10 Foreign investment applications in Thailand dropped 54 percent in 2020 due to the pandemic, according to the Board of Investment of Thailand (BOI). Japan is the biggest investor in the country, with projects worth 76 billion baht, followed by China with 31 billion baht.

February 15 (1)Thailand’s National Economic and Social Development Council (NESDC) reports that the country’s GDP contracted 6.1 percent in 2020 due to the impact of the Covid-19 outbreak. The NESDC lowers the GDP growth forecast for 2021 from 3.54.5 percent to 2.5-3.5 percent.

(2)Great Wall Motors, a Chinese automobile manufacturer, will establish a regional production center for electric vehicles in Thailand. Thai Prime Minister Prayut Chan-o-cha discusses with Chinese President of Great Wall Motors’ ASEAN Operations Zhang Jiaming, according to Thai Government Spokesperson Anucha Burapachaisri. The company plans to produce 80,000 cars in the first quarter in Thailand for sale across Southeast Asia.

February 18 Data from the Thai Government Public Relations Department shows that Thai fruit exports to China grew 39.43 percent year on year in 2020, worth US$2.9 billion. Durian exports to China reached US$1.51 billion in 2020, an increase of 77.57 percent year on year.

February 23 Thailand’s exports in January rose 0.35 percent year on year, according to the Commerce Ministry. Exports to China were up to 9.9 percent. Imports in January declined 5.24 percent year on year.

February 24 Central Bank of China, Thailand, and the United Arab Emirates as well as Hong Kong Monetary Authority have launched the Multiple Central Bank Digital Currency Bridge (m-CBDC) project to study the use of central bank digital currencies in cross-border payment, transfer, international trade settlement and foreign exchange transactions.

February 25 Thailand's Administrative Court issues an order to suspend the process to procure a constructor for two sections of the Thai-Chinese high-speed rail project linking Bangkok to Nong Khai in response to a lawsuit filed by the ITD-CREC, a joint venture between China Railway No.10 Engineering Group and Italian-Thai Development Public Company. The two sections include the Kaeng Khoi-Klang Dong and Pang Asoke-Bandai Ma, according to the State Railway of Thailand (SRT).

February 27 Thailand's Foreign Trade Department reports that border trade, including transit trade, decreased 1.7 percent year on year due to the pandemic, the closed border checkpoints, and the strong baht. Exports were down 2.16 percent year on year, while imports shrank by 1.05 percent. Transit trade rose 8.41 percent in 2020. Transit trade with southern China grew by 20 percent.

March 5 Premier Li Keqiang delivers the Government Work Report at the opening of the 4th session of the 13th National People’s Congress. He says that China will give priority to high-quality development and set its GDP growth target at above 6 percent this year. The country will create 11 million new jobs in urban areasand maintain the urban unemployment rate at around 5.5 percent.

March 7 China's exports increased 50.1 percent year on year in the first two months of this year, according to the GAC. Imports also rose by 14.5 percent year on year.

ASEAN was the country's largest trading partner in this period, an increase of 32.9 percent year on year.

March 12 China's foreign direct investments increased 31.5 percent year on year to US$27.17 billion in the January-February period, according to the Ministry of Commerce. Investments in the service industry grew by 48.7 percent, accounting for 80.2 percent of the total investments.

March 18 The United Nations Conference on Trade and Development (UNCTAD) releases the Trade and Development Report 2020 Update and forecasts China’s economic growth at 8.1 percent this year.

March 26 Kunming customs recently cracked down on hair smuggling cases from India, Pakistan, and Myanmar. The case involves 48 suspects and 11 smuggling gangs. China is now the world’s largest producer and exporter of wigs. The profits for smugglers are huge due to the price gap between the domestic and foreign markets of human hair’s raw materials.

March 29 The State Railway of Thailand (SRT) and the private firms sign 3 civil engineering contracts for the Thailand-China High-Speed Rail project, including the 4-3, 4-4, and 4-6 contracts.

April 6 (1)China releases a white paper entitled “Poverty Alleviation: China’s Experience and Contribution” by the State Council Information Office to share experiences and actions in eradicating extreme poverty with other countries.

(2)The IMF projects global growth at 6 percent this year, according to the World Economic Outlook. However, the health crisis remains a critical factor in the economic recovery. China’s economy will expand 8.4 percent, an increase from 8.1 percent in the January forecast.

April 13 China’s foreign trade reached US$1.29 trillion in the first quarter of 2021, an increase of 29.2 percent year on year, according to the GAC. Exports grew

38.7 percent year on year, while imports increased 19.3 percent.

April 16 China’s economy grew 18.3 percent year on year in the first quarter of this year, according to the NBS. The GDP reached US$3.82 trillion.

April 18-21 President Xi Jinping addresses the opening ceremony of the BoaoForum for Asia (BFA) Annual Conference 2021 via a videoconference on April 20. He calls on parties to defeat the pandemic through solidarity, strengthen global governance, uphold multilateralism, openness and innovation, and support high-quality Belt and Road cooperation. He stresses that China will never seek hegemony, expansion, and a sphere of influence. The BFA releases the Asian Economic Outlook and Integration Progress Annual Report 2021. This year marks the 20th anniversary of the BFA.

The BFA is held in Hainan Province under the theme "A World in Change: Join Hands to Strengthen Global Governance and Advance Belt and Road Cooperation." More than 2,600 delegates from over 60 countries and regions attended the event.

April 19 Foreign trade of China’s Guangdong Province increased 33.4 percent year on year to reach US$281.54 billion in the first 3 months of this year, according to Guangdong Customs. Exports increased 41.6 percent year on year, while imports were up 22.2 percent. The trade with ASEAN grew 28.4 percent.

April 24 The China-ASEAN Business Center is officially opened in the Nanning Area of China (Guangxi) Pilot Free Trade Zone. It is a one-stop service for ChinaASEAN economic cooperation such as trade and investment, legal consultation, finance, logistics, science and technology innovation, agricultural cooperation, and cultural and tourism cooperation.

April 28 (1) The Asian Development Bank (ADB)reports that China’s economic growth is projected to rebound 8.1 percent this year due to strong exports and recovery

in household consumption. Vietnam’s economic growth will be 6.7 percent this year due to exportoriented manufacturing, increased investment, and expanding trade.

(2) The 1st batch of Lao cattle has been exported to China under a bilateral agricultural cooperation project. It helps promote cooperation on the prevention and control of cross-border animal diseases in the Mekong region, according to the Chinese Embassy in Laos.

April 29 (1) Thailand's Finance Ministry cuts the GDP growth forecast of this year from 2.8 percent to 2.3 percent due to the impact of the pandemic on the economy. However, the Ministry expects exports will grow 11 percent as the world economy continues to recover.

May 3 (2) China opens the Dongxing border gate in Guangxi Zhuang Autonomous Region for fruit imports from Thailand. China requires Thai fruits to either come from farms that have been given good agriculture practices or GAP certification or processed at good manufacturing practices (GMP) certified facilities, according to Thailand’s Department of Agriculture.

(1)Foreign trade of China’s Hubei Province increased 88.1 percent year on year in the first quarter of this year to about US$18.1 billion, according to Wuhan Customs. Trade with ASEAN was up 96.9 percent year on year.

(2)The ASEAN+3 Macroeconomic Research Office, the ADB, and the IMF hold a joint virtual meeting of finance ministers and central bank governors from the three organizations. They agree with economic prospects in this region and that global inoculation will help the economic recovery. They recommend focusing on ensuring vaccines, promoting digital transformation, supporting domestic resources, improving tax systems and encouraging tax collaboration, and advancing a green economy.

May 4 Thailand’s border and transit trade value increased by 19.3 percent year on year in the first quarter of this year. Exports increased 20.5 percent year on year, while imports rose 17.7 percent, according to the Foreign Trade Department. The transit trade with Singapore, Vietnam, and southern China grew 36.1 percent. Major exports to China include rubber and fresh, chilled, frozen and dried fruits.

May 5

May 6

May 7 Thai durian exports to China in the first quarter of this year reached US$186 million, an increase of 14 percent year on year, according to the Department of Trade Negotiations (DTN). Import tariff for Thai durian has been waived in China, Hong Kong, Australia, New Zealand, Japan, India, Chile, and Peru.

Thai Commerce Minister Jurin Laksanawisit holds a video meeting with Secretary for Commerce and Economic Development of Hong Kong Edward Yau to discuss Thailand-Hong Kong FTA and a special agreement for access to Hong Kong’s thriving animation and film industry. The FTA is expected to be conductedby the third quarter of this year.

(1) China's foreign trade reached US$1.79 trillion in the first 4 months of this year, an increase of 28.5 percent year on year, according to the GAC. Exports were up 33.8 percent year on year, while imports grew 22.7 percent. Trade with ASEAN increased 27.6 percent year on year.

(2) Cambodia delivers the first batch of fresh mango exports to China, according to Cambodian Agriculture Minister Veng Sakhon.

May 10 Guangxi will promote economic and trade cooperation with ASEAN during the 14th Five-Year Plan Period (2021-2025) and establish cross-border industrial and service chains, according to Chinese Deputy Head of Commerce Department of Guangxi Zhuang Autonomous Region Liang Yiguang. Foreign trade between Guangxi and ASEAN increased by 74.9 percent year on year in the first quarter of 2021.

May 13 (1) China’s foreign direct investment (FDI) in actual use rose 38.6 percent year on year in the first 4 months of this year, a worth of about US$61.45 billion, according to the Ministry of Commerce. Investment from ASEAN expanded 65.2 percent year on year.

(2) The first cross-border freight train transporting agricultural products departs from Nanning, Guangxi Zhuang Autonomous Region. The train will cross the border at Pingxiang Checkpoint to Vietnam and travel by road from Vietnam to Laos. The journey marks the opening of a new long-distance transport route featuring both railway and road and passing through 2 ASEAN countries, according to Sinotrans Guangxi.

May 16 The China-Laos railway project finishes the construction of all 67 communication towers along the railway, according to General Manager of the Laos-China Railway Company Limited Xiao Qianwen.

May 17 (1)Chongqing Customs reports that Chongqing Municipality’s foreign trade increased 48.3 percent year on year to about US$38 billion in the first 4 months of this year. Exports were up 53.2 percent year on year, while imports grew 40.7 percent. Trade with ASEAN increased 30.4 percent.

(2)Thailand’s GDP in the first quarter of this year decreased by 2.6 percent year on year due to the impact of the third wave of the pandemic on the economy and tourism industry, according to the National Economic and Social Development Council (NESDC). The NESDC cuts the GDP forecast for this year from 2.5-3.5 to 1.5-2.5 percent.

May 24 Thailand's Commerce Ministry reports that vegetable exports to China grew 96 percent year on year to US$471 million in January-March. China is the largest foreign vegetable market of the country, accounting for 81 percent of exports.

May 25 (1)Thailand’s exports grew 13.09 percent year on year in April, according to the Commerce Ministry. Exports to China increased 21.9 percent year on year. Imports rose 29.79 percent.

(2)The first GBA-ASEAN freight train departs from Guangzhou, Guangdong Province to Hanoi, Vietnam, according to Sinotrans Limited. It will take about 4 days to reach the destination.

May 27 Chinese Vice Premier Liu He holds phone talks with US Trade Representative Katherine Tai to discuss trade disputes, exchange views on issues of each other's concern, and agree to maintain communication. Both sides hold candid, pragmatic, and constructive communication, according to Chinese Foreign Ministry Spokesperson Zhao Lijian.

May 28-29 The Shandong Provincial People’s Government and the ASEAN-China Center co-host the ASEAN-China (Shandong) SME Conference for Cooperation and Development in Jinan, Shandong Province to expand ties.

May 31 Thailand's Supreme Administrative Court upholds a lower court injunction to temporarily suspend the construction of the Kaeng Khoi-Klang Dong and Pang Asoke-Bandai Ma of the Thai-Chinese high-speed rail project in a response to a petition lodged by China Railway No 10 Engineering Group against a decision made by the Comptroller General’s Department on awarding the contract for the two sections.

June 1 Thailand’s cross-border trade rose by 26.7 percent year on year in the first 4 months, according to the Commerce Ministry. Transit trade to southern China increased 54.3 percent year on year. The main products included fruit, rubber, and computers.

June 3 Chinese Vice Premier Liu He holds talks with US Treasury Secretary Janet Yellen via a videoconference on China-US economic and trade relations on June 2. They agree to solve problems pragmatically, according to Commerce Ministry Spokesperson Gao Feng.

June 5

June 7 The Jingzhaitunnel, the last tunnel of the China-Laos railway, is successfully drilled through. All 167 tunnels of the project have been drilled so far.

The GAC reports that China’s foreign trade grew 28.2 percent year on year to US$2.3 trillion in the first5 months of this year. Exports were up 30.1 percent year on year, while imports rose 25.9 percent. ASEAN is the largest trade partner. Trade with ASEAN increased 29.2 percent year on year.

June 8 The World Bank forecasts that the global economy will grow 5.6 percent this year, according to the latest Global Economic Prospects (GEP) report. However, it warns that poor nations are being left behind. China’s growth will expand 8.5 percent.

June 10 Chinese Commerce Minister Wang Wentao has a phone conversation with US Secretary of Commerce Gina M. Raimondo to exchange views on trade and related issues and concerns in a practical way. They agree to maintain communication.

June 11 The Guangdong Customs reports that the city’s foreign trade increased 27.1percent year on year to US$484.62 billion in the first 5 months. Exports increased 30.1 percent year on year, while imports were up 22.8 percent. Trade with ASEAN grew 28.3 year on year.

June 17 The Shanghai Customs sees foreign trade grew 18.8 percent year on year to US$239.8 billion in the first 5 months. Exports increased 9.4 percent year on year, while imports rose 25.4 percent. Trade with ASEAN was up 19.3 percent.

June 18 China’s outbound direct investment (ODI) into BRI countries expanded 13.8 percent year on year to US$7.43 billion in the first 5 months, according to the Ministry of Commerce.

June 22 (1) The 15th ASEAN-China Forum on Social Development and Poverty Reduction is held in Beijing. The Forum aims to conduct high-level

exchanges, institutional and practical cooperation on poverty alleviation. The exchanges help the regional body to recover from the pandemic, according to a video speech by ASEAN SecretaryGeneral Dato Lim Jock Hoi. ASEAN countries have learned from China’s success in eradicating poverty.

(2) Yiwu City, Zhejiang Province sees foreign trade increase 25.2 percent year on year in the first 5 months. Exports grew 23.4 percent year on year, while imports rose 64.7 percent, according to Yiwu Customs. Trade with ASEAN increased23.5 percent year on year.

(3) The Chongqing Customs sees foreign trade increase 39.9 percent year on year to US$47.23 billion in the first 5 months. Exports surged 42.6 percent year on year, while imports were up 35.6 percent. Trade with ASEAN was up 23.9 percent.

June 23 China’s customs department has requested Thailand’s Department of Agriculture to randomly inspect plantations and factories that export durian, longan, mangosteen, and coconut to China. The inspection follows food safety standards required by China and guidelines provided by the UN Food and Agriculture Organization and the WHO on food safety during the pandemic.

June 25 The 29th meeting of the joint committee on ThaiChinese rail cooperation is held online and cochaired by Thai Transport Minister Saksayam Chidchob and Chinese Vice Chairman of the Chinese National Development and Reform Commission Ning Jizhe. They agree to hold a monthly tripartite meeting with Laos to review updates on the progress to connect the Thai-Chinese high-speed rail systems in Thailand with Vientiane.

June 27 China agrees to import 20,000 tons of 5 percent white rice from Thailand worth US$10.4 million to be delivered in June and July, according to Thailand’s Department of Foreign Trade. This is the 8th lot of rice that China imports from Thailand under the