"Compared with other New Southbound countries, Thailand is much slower in signingnew treaties," said Ian Tsung-yen Chen, professor at the Institute of Political Science atNational Sun Yat-sen University. "The current willingness to sign means that Taiwan'srelative importance in investment has increased and China's relative importance hasdeclined."
He added that it shows "Taiwan has more capital and leverage to ask Thailand to sign anew agreement."
"Taiwan's importance has increased, and the New Southbound Policy is the basis forexpanding relations," said Chen at National Sun Yat-sen University.
The main driver is the U.S.-China rivalry, he said, as it has contributed to China'sslowing economy and affected its overseas investment resources. And as Taiwan andothers withdraw investments from China, "Southeast Asia has become an importantlocation for re-investment," he said.