Song Qingrun, Non-resident Fellow, CISS-Chinia Forum, Tsinghua University; Professor, School of Asian Studies, Beijing Foreign Studies University

Lu Xiaohua, Graduate student, School of Asian Studies, Beijing Foreign Studies University

Prolonged conflicts in the Middle East have triggered a global energy crisis, compounded by climate-change impacts. Thailand is under heavy pressure in both energy supply and economic performance. Accordingly, reducing fossil-fuel dependence and accelerating energy-structure transition have become its pressing strategic priorities. China and Thailand share highly aligned green-development philosophies. China’s industrial strengths in green development match Thailand’s demands for green transition. Both sides have yielded fruitful practical outcomes in electric vehicles, photovoltaics, wind power, waste-to-energy power generation and other sectors. China-Thailand green-industry cooperation not only enables precise alignment between China’s green production capacity and Thailand’s energy needs, but also sets an example for regional countries pursuing green-energy transition. It contributes to fostering a closer China-ASEAN community with a shared future.

I.Thailand under Pressures from the Global Energy Crisis and Climate Change

Middle-East conflicts lasting for months have sharply cut global oil supply. On 30 April in Paris, Fatih Birol, Executive Director of the International Energy Agency, reaffirmed that the world is experiencing one of the worst energy crises in history. Meanwhile, Southeast Asia has suffered frequent floods and droughts in recent years, undermining energy production and power-supply stability. As an export-oriented economy heavily reliant on Middle-Eastern energy imports, Thailand bears severe strains from the combined shocks of the energy crisis and climate change.

Middle-East conflicts have exposed the fragility of Thailand’s fossil-fuel supply system and plunged the country into a severe energy crunch. Data from Thailand’s Ministry of Energy shows that Thailand’s total final energy consumption stood at 1.482 million barrels of oil equivalent per day in 2024. Oil and power consumption kept rising, accounting for 56 % and 25 % of total energy consumption respectively. Natural-gas-fired power generation makes up roughly 60 % of Thailand’s total power supply. Thailand has high external-energy dependence: about 92 % of its oil consumption is imported, and around 47 % of imported crude oil comes from the Middle East. Its annual imports of liquefied natural gas (LNG) range from 8.8 million to 10 million tons, among which one-quarter to one-third originates in the Middle East. Turmoil across the Middle East has drastically cut oil-and-gas shipments through the Strait of Hormuz. International oil-gas prices and shipping costs have soared, trapping Thailand in shortages of fuel oil, natural gas and associated electricity, resulting in a compound energy crisis.

The energy crisis has taken a toll on Thailand’s economy. Macroeconomically, downside risks have mounted. In October 2026, the World Bank revised up Thailand’s GDP-growth forecast for the current year to 2.0 %, an upward adjustment of 0.7 percentage points. It noted that Thailand ranks among Southeast Asian economies hardest-hit by the ongoing energy crisis. To cope with the situation, the Thai government has rolled out urgent self-help measures, including a 400-billion-baht emergency-loan programme to invest in clean energy and speed up domestic renewable-energy projects. It has also introduced electricity-price subsidies, encouraged green travel and energy conservation among the public, and turned to China and Russia for fertiliser supplies. Nevertheless, persistent instability in the Middle East will pose long-term headwinds for Thailand’s economic growth.

Notably, climate change is not a separate issue from the energy crisis. Severe extreme floods in recent years have directly damaged Thailand’s power infrastructure. In November 2025, Hat Yai in Songkhla Province, southern Thailand, recorded 335 mm of rainfall within one single day, a 300-year high. Power systems in Hat Yai and surrounding areas suffered total blackouts, with restoration timelines once uncertain. Industrial economic losses totalled approximately 1.282 billion baht. In late September 2026, heavy rainfall triggered floods in Bangkok and its vicinities. The Bangkok municipal government expanded flood impacts to all 50 districts of the city, disrupting urban operations. While the Middle-East conflict represents an abrupt external shock with prolonged ramifications, climate-driven hazards are becoming more frequent and intense. Power-infrastructure damage and industrial shutdowns caused by extreme floods directly weaken Thailand’s domestic energy production and supply capacity. The interplay of these two factors aggravates Thailand’s energy-crisis woes.

II. Fruitful Achievements in China-Thailand Green-Industry Cooperation to Help Thailand Overcome the Crisis

Against the backdrop of global energy-crisis shocks and accelerated regional energy transition, China-Thailand green-industry cooperation has entered a period of strategic opportunities. First, China and Thailand share compatible philosophies for green development. China has long pursued green-development principles. It has not only built the world’s most comprehensive new-energy equipment manufacturing system domestically, but also taken the Green Belt and Road Initiative as a defining feature of its international cooperation. In recent years, Thailand has advanced the BCG (Bio-Circular-Green) development model and prioritized renewable-energy development. Its Power Development Plan 2026-2050 commits to vigorous advancement of clean-energy deployment. Second, both countries have been hit by this year’s severe global energy crisis, with Thailand suffering the heaviest impacts. As “China and Thailand are one family,” the two countries are jointly turning this crisis into a powerful driving force for energy transition and green development in both countries and the region.

Within the global energy-transition process, China has been effectively enhancing the energy-transition capacity of Thailand and other countries by continuously exporting advanced low-carbon technologies, equipment and mature zero-carbon solutions. Thailand is now at a critical stage of energy-structure transformation. Renewable energy sources such as photovoltaic and wind power constitute key pathways for Thailand to reduce its dependence on Middle-Eastern fossil fuels and bolster energy security. With highly aligned concepts and interests, China and Thailand have secured substantial outcomes in green-energy cooperation covering electric vehicles, photovoltaic products and the wind-power sector.

In the electric-vehicle sector, China and Thailand have jointly accelerated industrial deployment in recent years, making remarkable contributions to Thailand’s efforts to weather the energy crisis, pursue energy transition and advance green development. Since the launch of the Belt and Road Initiative, Chinese automakers including SAIC MG, BYD, Chery and GAC AION have successively invested in manufacturing plants in Thailand, driving the transformation and upgrading of Thailand’s new-energy vehicle industry. In 2019, the Thai subsidiary of SAIC launched cooperation with a major Thai energy corporation to build an electric-vehicle charging network. In April 2023, the ground-breaking ceremony for the SAIC Zhengda New-Energy Industrial Park was held in Chonburi Province, focusing on localised production of core new-energy-vehicle components.The Thai government has also rolled out relevant strategic frameworks and EV promotion policies. Thailand’s Board of Investment (BOI) has approved 198 electric-vehicle projects, attracting investments totalling over 137 billion baht, as Thailand strives to become Southeast Asia’s EV manufacturing hub. Most of these investments originate from China. Amid the energy crisis, senior Thai political leaders have set personal examples by travelling in electric vehicles and calling on the public to adopt green travel and conserve energy. On 25 March 2026, Thai Prime Minister Anutin travelled in a newly-purchased BYD electric vehicle. On 24 April, he drove Chinese Foreign Minister Wang Yi to a dinner venue. Deputy Prime Minister Somsak was publicly seen driving the JAECOO 6T EV pure-electric model under Chery. This top-down demonstration quickly resonated in consumer markets.Leveraging strengths in intelligent driving assistance and internet-of-vehicles systems, Chinese new-energy vehicles have rapidly won favour among young Thais and urban middle-class consumers. A growing number of Thai buyers opt for cost-effective Chinese new-energy vehicles. The 47th Bangkok International Motor Show concluded successfully on 5 April 2026 at IMPACT Exhibition and Convention Centre in Bangkok, with total vehicle pre-orders surging by 71 % year-on-year, signalling steady recovery of market purchasing power and confidence. Chinese automakers delivered an outstanding performance: BYD ranked first with 17,354 pre-orders, followed by Toyota with 15,750 units. This marks the first time a single Chinese new-energy-vehicle brand has outperformed long-dominant Japanese automakers in pre-order volumes. Eight out of the top-ten brands by pre-orders are Chinese, compared with only two Japanese brands. For the first time, Chinese automakers have shaken Japanese automakers’ entrenched position in Thailand’s automotive market. Thailand’s EV market remains buoyant, and rising public adoption of Chinese electric vehicles helps cut Thailand’s oil consumption.

In the photovoltaic sector, multiple landmark China-Thailand cooperation projects have been launched and put into operation. Thailand boasts abundant solar resources, making it suitable for photovoltaic power generation. Amid the global energy crisis, China’s photovoltaic industry has emerged as a global leader in energy transition. In October 2021, the Sirindhorn Dam floating solar project went into operation. This integrated renewable energy facility ingeniously combines floating solar power with hydropower. The Ubolratana floating photovoltaic power station in Khon Kaen Province, contracted and built by Dongfang Electric International Corporation, was connected to the grid in March 2024 to boost Thailand’s renewable energy development. In April 2026, the full-capacity grid connection of the rooftop photovoltaic project of Zhongce Rubber (Thailand) was achieved. It is currently Thailand’s largest single rooftop PV installation. Guangxi Carbon Peaking New Energy Co., Ltd. and Guangxi Tenengfa Construction Engineering Co., Ltd. have innovatively rolled out a “PV Energy Supermarket” supply model in Thailand, integrating a full range of photovoltaic products and delivering one-stop services. Driven by the booming photovoltaic sector, Thai citizens can also participate in the national clean energy transition. Applications for the “People’s Solar” programme are open. Thai homeowners who install rooftop PV panels can generate electricity for self-consumption to cut electricity bills and sell surplus power to the national grid. Practical China-Thailand photovoltaic cooperation helps Thailand reduce fossil fuel imports and build a diversified and complementary energy utilisation system.

In the wind power sector, China’s innovative solutions precisely address Thailand’s practical needs. China Energy Engineering Corporation’s subsidiary, China Energy Engineering International Co., Ltd., signed three wind power EPC turnkey projects in Nakhon Ratchasima Province of Thailand in December 2023. Moreover, China Energy Engineering held talks with Thailand’s Big Group in May 2024. Both sides agreed to carry out multi-dimensional cooperation in key areas including offshore wind power, photovoltaics, green hydrogen, ammonia and methanol, and new energy storage to advance project implementation. Given the wide variations in wind parameters and load conditions across Thai wind farms, Goldwind has designed a hybrid tower solution for Thai projects. In September 2025, Goldwind and Thailand’s Gulf Energy Development (GULF) formally signed a cooperation agreement in Bangkok. In March 2026, Tianshan Hi-Tech, a Goldwind subsidiary, completed the pouring and acceptance of the first section of hybrid towers for this Thai project cluster. Media and industry reports regard this as a milestone marking the successful deployment of Goldwind hybrid tower products in Southeast Asia. The successful delivery of Goldwind’s hybrid tower project provides strong support for Thailand at a critical moment of tackling the energy crisis and facilitates the development of a more secure and self-reliant energy system.

In the waste recycling industry, China and Thailand focus on waste-to-energy incineration. Against the backdrop of tight power supply in Thailand caused by natural gas shortages this year, relevant cooperation outcomes help Thailand increase green power supply. In October 2020, Dongfang Electric International Corporation signed a general contracting agreement for the municipal solid waste incineration power project in Tak Province. Upon completion, the plant can process approximately 150,000 tonnes of domestic waste annually and generate around 400 GWh of green electricity per year. Thailand’s Nong Khaem waste power plant, invested and constructed by Xinyuan (China) under SDIC Power Holdings Co., Ltd., has processed more than 1.68 million tonnes of waste and delivered over 636 GWh of electricity to the Bangkok power grid since commissioning in 2016. In April 2022, SINOMACH signed for Thailand’s TPIPP 150 MW waste-to-energy project. Once finished, the total waste treatment capacity of the plant will reach 13,000 tonnes per day, further accelerating local energy conservation and emission reduction. On 8 April 2026, the Anu municipal solid waste incineration power project, jointly participated by multiple Chinese firms, achieved successful one-off grid connection. On 28 May, the third high-temperature ultra-high pressure waste incineration boiler of the TPIPP 150 MW RDF waste power station undertaken by China Electric Power Engineering Co., Ltd. passed the 72-hour full-load trial run. China-Thailand waste-to-energy cooperation projects will effectively resolve local waste disposal issues while supplying green electric power.

III. The Significance of China-Thailand Green Industry Cooperation

First, China-Thailand green industry cooperation facilitates the precise matching of China’s green production capacity with Thailand’s energy demands, jointly advancing green development in both countries. Amid Thailand’s push for strategic investment, TikTok System (Thailand) Co., Ltd. received approval on 6 May 2026 for an investment of approximately 842 billion baht (about 25 billion US dollars). This project will deploy additional servers and expand data storage and processing infrastructure in Bangkok, Samut Prakan and Chachoengsao Provinces, serving as a benchmark digital infrastructure initiative. China’s mature technologies and system integration capabilities in photovoltaics, energy storage and related sectors help Thailand align green power capacity with its emerging electricity consumption needs.

Second, China-Thailand green industry cooperation advances China-ASEAN energy transition and green industrial collaboration, offering references for ASEAN member states to pursue green energy transformation. The International Energy Agency has identified notable common bottlenecks in the development of clean energy industries across Southeast Asian nations. Practical experience gained from China-Thailand green cooperation can be replicated in other Southeast Asian countries, supporting regional green energy transition and contributing to a closer China-ASEAN community with a shared future.

While China-Thailand green industry cooperation has built a solid foundation, considerable room remains for further improvement. Looking ahead, both sides should strengthen institutional arrangements, policy communication and alignment of development plans. In addition, they need to scale up investment, improve supporting industrial chain facilities, and jointly establish a long-term and stable framework for green industry cooperation.

The original text is in Chinese and was published in China–ASEAN Panorama, Issue 4, 2026. This is an unofficial translation and is for reference only, and The article was slightly updated and revised when it was included on this website.please note this.