Interview with Chinese ambassador

What lies ahead against this backdrop? The following is an exclusive interview by The Nation editor-in-chief Suthichai Yoon with the new Chinese ambassador to Thailand, Guan Mu.

Since you first came to Thailand in 1976, a time when Thailand and China were undergoing enormous changes, what have been the biggest changes between the two countries in your opinion?

I think it's the relationship between the people of the two countries. Since the normalisation, things have moved so fast for the better. Compared to 30 years ago, changes have been everywhere, in every aspect and in great amounts. I would say like a new sky, new earth.

When you first came here, there remained a number of doubts, not least because of politics and the Cold War. How hard was that?

In fact, the environment in Thailand was not so difficult. But yes, the international environment was not so good. What helped us was the love and bonding between the people of the two countries. We didn't cause each other problems and there was good understanding. This gave the fledging diplomatic work a good start.

How cautious did the diplomats of the Cold War era have to be, with America on one side and China on the other?

We had to be very cautious and prudent. Unlike now, when we can talk about anything. This is a big change.

How open can diplomats be now, especially when major problems occur?

We can really talk. When something happens, we can talk straightforwardly at all levels. But in fact there are no serious issues between the countries as of now. The only concern is how to drive the relationship and cooperation further forward.

What about problems like Chinese products flooding Thai markets, affecting Thai farmers? Is this a problem of national significance?

I don't think so. There have been complaints, but after discussions and cooperation, such problems have eased. Or, in the event that no agreement was reached on the spot, both countries committed to further and more serious negotiation efforts. There was no squabbling. On the fruit issue, when Thai and Chinese fruits go in opposite directions, there might be some hiccups. There were no serious complaints and efforts were made at government levels to help all traders involved to reach an understanding.

There are cases where central governments understand each other well, but things are not smooth at local levels. What should be done in cases like this?

First we have to accept that some problems are bound to happen. When we opened up the market to allow Thai fruits, there were some complaints on the Chinese side. For example, Chinese longan growers were worried that the Thai produce would steal their market. It was our job to explain that the Thai fruits would help the overall Chinese fruit market in terms of variety, and in the end the quality will improve, which is good for both sides.

Can the central government work on details with local governments?

We can. Maybe they have problems with changes, but we must help them.

Have you ever received complaints from Thai officials or Thai farmers regarding very cheap Chinese produce flooding Thai northern markets?

I have never received complaints but I know the problem exists. In terms of trade volume, Thai exports to China are bigger. I believe the Thai government intends to explain to all farmers in the north about the situation and the bigger picture of national interests. And the government will also have to find suitable markets that offer suitable prices for products. This, I think, is what both governments should do.

Have there been discussions about this problem at government and ministerial levels?

Of course, at all levels.

Thailand wants to see more Chinese investment. What kind of Chinese investment do you foresee in Thailand?

The Chinese government is supporting quality and experienced investors, especially those targeting Southeast Asia, our neighbours. We want everyone to grow alongside one another. China has succeeded in national development, yet we understand that nobody can grow alone. Unilateral development can't be sustained. We need to grow along with our neighbours. We firmly uphold this belief. Our national development plan must have long-lasting momentum.

With support from the Chinese government, a Thai-Chinese industrial complex joint venture took off recently in Rayong. It covers 3.5 square kilometres and the first phase, which covers 1 square-kilometre, has been highly successful in drawing Chinese investors to create products for both Thai and foreign markets. This is a very good project and I believe more investment will come.

Can a Chinese-Asean free trade agreement become a reality soon?

I'm optimistic, because we have been trying and real progress has been made. There are three key agreements to be signed and two of them have already been signed. Negotiations on the third have been completed and we expect to sign it in Pattaya. I think it can be signed this year and everything seems to be on schedule.

The Chinese-Asean trade volumes have been growing more than 20 per cent every year, or more than 30 per cent in some cases. Bt230 billion is a very high figure. We hope, now that we are facing a crisis, the Chinese and Asean governments remain firm in their commitment to go through with it. As for the Chinese government, we are prepared, in terms of money and human resources. We have created two funds -a Bt15 billion cooperation fund and a US$10 billion (Bt341 billion) Asean investment fund. We are also holding human resources training programmes involving thousands of people, particularly in agriculture, which China and many Asean countries consider their economic foundation.

What are the major obstacles that may prevent it from happening as early as we wish?

Obstacles are understandable. In the case of the FTA, Thailand is a great negotiation partner and things go smoothly. Special Thai needs are taken care of and so are our needs. This is not always the case with some other countries, however. We have been trying to make them understand the difficulties on our part and our willingness to give as much as we can. Some people have come up with an FTA success formula of giving 4 to China and 6 to Asean, yet for neighbours who are really in trouble we have given them even more - 30-70 per cent in some cases.

Does that lead to a problem of countries asking why they get those, but we don't?

It's been quite transparent, and fortunately there's nothing like that. Everyone has to think of the big picture, so there aren't many complaints.

Has Thailand's political crisis caused any trouble in the bilateral relationship?

Fundamentally, nothing has been affected, thanks largely to the fact that relations have been profound in all aspects. The Thai royal family has been very interested in China and there have been state visits. Prime Minister Abhisit has also paid a visit and Thai MPs, senators and military officials have also been visiting China. You can say it's happening at all levels. Last year about 800,000 Chinese visited Thailand, which is a very high number. More and more Thais are visiting China, although more Chinese are visiting Thailand than the other way round. Tourism is good because it promotes understanding and gives us knowledge about the other side, about how they live and how they think, which is very important in today's world.