Sino-Thai bilateral relations during the Cold War were formed out of mutual concerns over security issues. Now they have entered an era of long-term economic partnership. The political and economic desires of both countries appear to be mutually beneficial. The China-ASEAN FTA, in particular, is fostering strong trade ties. Thailand, nevertheless, must find a balance between its relations with the United States and China, and also prepare for a flood of cheap Chinese goods. A number of Thai manufacturing sectors will become vulnerable. Nevertheless, this is an opportunity for them to improve their efficiency and encourage new research and development.
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