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Subject

Outlook for Thai diplomatic relations.

Significance

On December 16, the fifth US-Thailand Strategic Dialogue was held in Bangkok, the first round of the dialogue since the 2014 coup. No major deliverable emerged, but the dialogue was viewed as a success simply because it was convened. Three days later, Thailand and China broke ground on a new rail system to connect Kunming to Bangkok and Thailand's eastern seaboard.

Impacts

China-ASEAN and therefore intra-ASEAN land-based connectivity is set to increase.

US investors are increasingly wary of political and regulatory uncertainty in Thailand.

Although China is Thailand's largest trading partner, the United States is its primary security ally.

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