In December 2019, Chinaโ€™s Consumer Price Index (CPI) increased by 4.5% compared with the previous year; however, it still lowered than the projection at 4.7%. Meanwhile, in 2020, China will make further efforts in additional tax cuts to improve its tax administration efficiency. Furthermore, China and the US have signed a phase 1 trade deal on January 16, 2020, affecting positive ways to the economy of China, the US, as well as the worldโ€™s economy. However, International Monetary Fund (IMF) has reduced the prediction of Chinaโ€™s economic expansion as 5.8% in 2020, which lower than the economic growth rate as 6.1% in the previous year. Nowadays, Chinaโ€™s economy is in the stage of structural reforms to be sustainable economic growth. They try to reduce the country's reliance on debt to stimulate their economy and urge domestic consumption. Although during the reforms Chinaโ€™s Gross Domestic Product (GDP) slowly expands, it is the effective growth.

According to the Association of Natural Rubber Producing Countries (ANRPC), in 2019, China produced 836,300 tons of natural rubber; meanwhile, the natural rubber demand was 5.48 million tons (39% of the worldโ€™s natural rubber demand), down 3% compared to the previous year. Furthermore, China imported 5.11 million tons of natural rubber, 50% were mixtures and compound rubber. In the rubber-based product sector, in 2019, China produced 611 million units of all tyres (511 million units were radial tyres), up 1% YoY, and Chinaโ€™s car sales were 26.2 million units (28% of worldโ€™s sales), down 8.3% YoY (LMC International Ltd., 2020). It can be inferred that Chinaโ€™s natural rubber consumption is slow down. One of the factors is that China pays attention to environmental policy and has rolled out a pollution control policy to save the environment. Because of the policy, some of Chinaโ€™s rubber manufacturers close down and relocate their production base to ASEAN countries such as Vietnam and Thailand, resulting in an increase in Thailand's natural rubber consumption. To support the increasing of natural rubber domestic consumption, Thai government has rolled out the policy in establishing the Eastern Economic Corridor (EEC), especially in Chonburi and Rayong, in which recently 4-5 Chinaโ€™s tyre entrepreneurs have already established factories and proceeded the production. 

The above data suggests that Chinaโ€™s potential and growth has a positive impact on the economy of ASEAN, especially on the rubber industry. Therefore, Thai government and the private sector should promote trade and investment and international relations with China. In this regard, China Rubber Industry Association (CRIA), one of the leading rubber organizations of China, is to organize China Rubber Conference 2020 under the theme โ€œAhead by Pooling our Wisdom, Embracing a Splendid Future in the New Eraโ€ during 17-20 March 2020 at Shangri-La Hotel, Qingdao, China. It is projected that more than 1,000 people from both government and private sectors will attend the conference.  The Thai Rubber Association is pleased to cooperate with China Rubber Industry Association for the mutual sustainable development of the rubber industry of Thailand and China. I take this opportunity to invite interested parties to attend China Rubber Conference 2020. Details can be fetched at www.criaevents.com

On the occasion of Chinese Lunar New Year 2020, I extend to you and your family our warmest greetings, wishing you a happy Chinese Lunar New Year, your career greater success, your family happiness, and your perfect health and lasting prosperity. Xin jia yu ei Xin ni huad chai!