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Thailand will not change its policy on friendly relations with China after the recent government change, said an official with Thai Embassy in China on Tuesday.

 

"I want to say that the policy remains unchanged," said Buskorn Prugsapongse, minister counselor of Thai embassy, at a seminar on China-ASEAN (Association of Southeast Asian Nations) free trade area.

 

Thailand and China established diplomatic relations 31 years ago, and since then the friendly relations between the two countries and peoples have never changed, Buskorn said.

 

"The political and economic environment in Thailand remains the same as before," said Buskorn, in response to worries about the economic situation in Thailand, and she urged Chinese enterprises to invest in the country.

 

"I want to emphasize that Thailand has the potential to become an important destination for Chinese investment with a strategic location as a gateway to Southeast Asia and the Greater Mekong Sub-region," Buskorn added.

 

On China-ASEAN free trade area (CAFTA), Buskorn said the two sides are negotiating liberalization in investment and service trade.

 

"If successfully concluded, the CAFTA will bring about many changes and business opportunities for ASEAN and China, and the free flow of goods between China and ASEAN through Thailand will greatly benefit both countries," Buskorn said.

 

After signing the "Agreement on Trade in Goods" in 2005, China and ASEAN started to remove trade barriers by launching a tariff reduction plan covering 7,000 categories of products.

 

According to the agreement, all those products will enjoy zero-tariff rating by 2010 when the CAFTA is established.

 

(Xinhua News Agency October 11, 2006)