this post was submitted on 24 Jul 2026
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Global News

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cross-posted from : https://lemmy.zip/post/68468176

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[–] Sepia@mander.xyz 1 points 3 days ago

The use of Yuan (and currencies other than USD) is still quite low as the article says.

Would betting on Yuan be a good idea for Thailand?

China would have an additional measure to pressure the government in Bangkok for whatever political or economic gains Beijing is aiming at, simply by devaluing (or appreciating) its currency.

This is important as the bilateral trade between the two countries tells a story well known from many others of China's trade partners: In 2025, Thailand’s exports to China reached almost USD 40 billion, while imports from China were significantly higher at USD 108 billion.

Thailand’s deficit with China in 2025 - USD 68 billion - represents an increase by 50% year-on-year and ranks among the steepest annual widenings of all of China's trade partners in the Asian region, second only to Malaysia’s 62% deficit increase and similar to Vietnam’s 40% jump.

Maybe more importantly, Thailand's trade deficit with China has grown every single year for the past five years.

The devastating consequence of China’s export surge is industrial contraction. Thailand’s Kasikorn Research Center estimates that 4,300 Thai factories closed in the two years to 2025, spanning automotive, electronics, garments, furntiture, steel. The International Monetary Fund (IMF) has issued a forecast of 1.6% and the World Bank anticipates approximately 1.7% - the lowest growth rate for Thailand outside of crisis mode like the pandemic or the 2008 turmoils.

If and when the Yuan gains ground in Thailand China-trade in a meaningful way, Bangkok risks its economy (and politics) to open up for more coercive tactics and exploitation by Beijing.