Thailand Recognizes China As Full Market Economy
The government of Thailand has recognized China as a
full market economy, opening it up to equal trade status.
New Zealand and Singapore have already recognized China
as a full market economy in Asia.
The announcement was made during a visit to China by
Thai prime minister Thaksin Shinawatra. China has made
major investments in Thailand, and Thai conglomerates
have invested in China, mainly in agriculture and retail
distribution.
Full market economy status is an objective which the
Chinese government has been pressing hard for in Asia.
This would serve as the first step in the creation of
an Asian free trade area (FTA). With Europe's European
Union and North America's NAFTA agreement, this is something
which Asian governments believe is highly desirable.
Most objections come from the US government, which continues
to hold out that China is still not a market economy.
The European Union is inclined to give market economy
status to China, but Washington is concerned that it would
lead to arms sales to China. The US sells weapons to Taiwan,
which Beijing strongly objects to.
During the coming year, it is believed that Australia
will accord China market economy status. The Japanese
government seems to be holding out, largely because of
fears of Chinese economic domination. South Korea has
significant investments in China, and is believed to lean
towards giving China market economy status soon.
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