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Significance

Both the Thai and Chinese militaries are participating. The Thai junta -- keen to bolster strategic cooperation with Beijing and to attract Chinese infrastructure investment -- has made much of Chinese participation in the exercise, to the consternation of Japan and Thailand's long-standing treaty ally the United States. Beijing, for its part, seeks to build alliances in South-east Asia and capitalise on Thailand's market and investment opportunities.

Impacts

US firms are unlikely to be marginalised in the Thai market, even though their presence in Thailand is limited.

Security relations will dominate US-Thai relations for the foreseeable future.

Japan will continue to boost security relations with South-east Asian partners.

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