Chinese businesses are adopting a “China-plus-one” strategy as domestic profit margins narrow and production capacity grows. By investing in neighbouring economies, companies are seeking new markets while reducing their exposure to tariffs and geopolitical risks.

Thailand is emerging as a stronger alternative to Vietnam, which enjoyed widespread appeal among Chinese manufacturers for much of the period. Thailand attracted billions of dollars in investment last year, giving it an advantage amid renewed trade tensions.

The investment influx has also increased Bangkok’s awareness of potential risks, particularly those associated with US measures intended to curb the transshipment of Chinese goods.

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