Thailand has had a long-term relationship with China in terms of trade, investment and tourism; especially Thai exports of natural rubber (NR) to China which have continually expanded. China is the world’s biggest NR consumer and tire producer. It is an important market which indicates NR demand each year. Economic outlook of China is one of many factors affecting NR demand and price. Therefore, it is important for participants in rubber industry to follow Chinese economic scenario closely. Last December, one of the most anticipated conferences on Chinese economy, namely the annual Central Economic Work Conference was convened. Among important matters is that China will continue to implement proactive fiscal policy as well as prudent monetary policy. Proactive fiscal policy will be implemented with more effectiveness, involving a larger scale of tax and fee cuts. China will improve consumption and boost spending power for stronger domestic market. To achieve high-quality manufacturing sector, technological innovation will be strengthened. Moreover, market access will be loosened. Legitimate interests of foreign companies in China will be protected. However, despite the fiscal stimulus, the IMF estimated that China’s economy will slow due to the influence of trade tensions with the United States.

On rubber front, I would like to throw light on important figures of Chinese rubber industry in 2018. China has been the world’s biggest NR consumer. Last year, China consumed 5.61 million tons of NR (42% of world’s consumption), up 4.6% year on year. During the first 3 quarters of 2018, China produced 530 million units of light vehicle tyre (30% of world’s production) and 100 million units of medium and heavy commercial vehicle tyre (48% of world’s production), up 5.1% and 3% year on year respectively. However, China’s car sales decreased 3.1% year on year to 27.73 million units (29% of world’s sales) in 2018.

The above data suggests that China’s potential and growth has positive impact on the economy of ASEAN, especially on rubber industry. Therefore, it is necessary that Thai government and private sector promote trade and investment and international relation with China. In this regard, China Rubber Industry Association (CRIA), which is one of the leading rubber organizations of China, is to organize China Rubber Conference & China Rubber Expo 2019 under the theme “Innovation Leading, Lean Development” during 24-27 March 2019 at Shangri-La Hotel, Guangzhou, China. TRA was invited to participate as a speaker in a rubber forum to be held on 26 March 2018. The Thai Rubber Association is pleased to cooperate with China Rubber Industry Association for the mutual sustainable development of rubber industry of Thailand and China. I take this opportunity to invite interested parties to attend China Rubber Conference & China Rubber Expo 2019. Details can be fetched at con.criaevents.com

On the occasion of Chinese Lunar New Year 2019, I extend to you and your family our warmest greetings, wishing you a happy Chinese Lunar New Year, your career greater success, your family happiness and your perfect health and lasting prosperity. Xin jia yu ei Xin ni huad chai!