China & Thailand to Build Digital Ecosystem for Smart Cities & Cross-Border Trade

• 2 October 2024
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China and Thailand are joining forces to create a robust digital ecosystem aimed at developing smart cities and enhancing cross-border trade, with Chinese technology playing a pivotal role across Southeast Asia. The Digital Economy Promotion Agency of Thailand, in collaboration with cities like Shenzhen and Hangzhou, as well as Guangxi and Yunnan provinces, is spearheading this initiative, as reported by SCMP dated 17 September 2024.

The collaboration focuses on building digital infrastructure such as submarine cables and regional laser centers, supporting Thailand’s digital transformation, and aligning with China’s Belt and Road Initiative, according to Supakorn Siddhichai, Executive Vice-President of the agency. This partnership was highlighted at the Belt and Road Summit in Hong Kong in late September.

Despite these efforts, challenges remain, particularly regarding the secure flow of data, a key issue for digital economies. Supakorn acknowledged that while Thailand’s digital infrastructure continues to improve, ensuring data privacy and security is a critical obstacle: “You don’t always know if the data is reaching its intended destination.”

China’s regulatory measures, such as the 14 new rules issued by the Cyberspace Administration of China in March, underline the need for data to undergo stringent security reviews before being sent overseas. Thailand’s involvement in global digital trade frameworks like the Digital Economy Partnership Agreement (DEPA) is still under evaluation, though it is expected to play an essential role in facilitating smooth cross-border trade across Southeast Asia.

This partnership is not new. Since 2017, the Shenzhen government has been working with Thailand’s Ministry of Digital Economy and Society to enhance national broadband infrastructure and smart city development, further reinforcing Thailand’s digital evolution. However, the journey to fully optimizing these advancements in smart cities and trade hinges on resolving critical data flow challenges.

China’s cooperation under the Belt and Road Initiative is aimed at strengthening technological advancements, particularly in 5G communications, smart city construction, and cross-border e-commerce. Thailand’s collaboration with Chinese giants Huawei, Alibaba, and Tencent signifies a commitment to driving digital growth in the region. As part of their ongoing partnership, Thailand’s Digital Economy Promotion Agency visited Zhejiang Dahua Technology in Hangzhou earlier this month to discuss innovations ahead of the Smart City Expo World Congress.

• Technology and Engineering