Thailand Law Journal 2010 Spring Issue 1 Volume 13

4.3 Tong Ren Tang
Tong Ren Tang, the leading producer of traditional Chinese medicine with a history more than 300 years, has started to explore the overseas market with five joint-venture companies overseas to handle local sales as well as several pharmacies in Hong Kong, Britain, USA, Australia and Thailand. It has formed its unique feature in pharmacy, on the basis of traditional craftsmanship and modern scientific method. It produces therapeutic Chinese patent medicine with 24 drug forms and over 800 varieties per year. Tong Ren Tang promises to produce more and better drugs to contribute to the people's health around the world (File://G:\China company Traditional Medicine Company Eyes Overseas Market.htm, 2007).

In addition, the pharmacy in Thailand, which began a trial operation in 2001, has been welcomed by the Chinese in Southeast Asia and has begun to make a profit. The Beijing Tong Ren Tang (Thailand) Co., ltd was established In March 2001. In Thailand, where most people subscribe to traditional Chinese medicine, and have heard of Tong Ren Tang, this drugstore is like a Chinese honey pot for Thai beers (Li, 2000). Tong Ren Tang is about to seize opportunities and meet challenges, and decide to continue its reform and innovation. It will organically combine the traditional idea of Traditionai Chinese Medicine (TCM) with modern science and technology to contribute development of TMC.

4.4 China State Construction Engineering Corporation (CSCEC)
CSCEC was established in 1982. As an important and back boned state-owned enterprise under the administration of the Central Government, it has operated actively in both domestic and "verseas markets with construction and real estate business as its core business. Under the guidance of the reform and opening-up policy of the party and government, with correct leadership of higher authority and warm assistance of all sectors of society, and through hard work of the leaders and staff for decades, CSCEC has become the largest construction enterprise and the largest international contractor in China.

Confronting with new situations after China's entry into WTO,CSCEC now, with completely new ideas, scientific management and fine-quality services, strictly follows the development to be thought of commercialization, systematical operation and scientific management, focuses on sorting out the relationship between parent company and its subsidiaries, optimizes allocation of resources, and actively promotes the readjustment of the property rights and industrial structure of 5 key backbone enterprises and 12 traditionalbackbone enterprises including 8 engineering bureaus and 4 design institutes. In this way, CSCEC will strive to become one of top-ranking transnational enterprises in the world (www.cscec.com.cn/english/co..htm, 2007).
China State Construction Engineering (Thailand) Co.,Ltd. Investment in Thailand in 1982, will hold 100 percent, 20 million baht and has 60 staffs, 50 of whom are local. Construction Projects consist of Baiyoke Tower Building, US$ 6.3 million (1984 - 1987), Serpakarn river Front condominium and shopping complex, USS 10million (1985-1987), Man Kuang Dam, US$ 31.7 million (1987 - 1991), Saranjai Mansion Tower, US$ 10.2 million (1988 - 1992), Prinklao Project 1 Part 1, US$ 15.4 million (1995 - 1999), and Factory of Worldbest textile (Thailand), Co., Ltd., US$ 3 million (2002), and The Rama VIII bridge 2001, 2,700 million baht (Sub contract by CHEC (Thai) Co.,Ltd. 800 million baht), Bangkok City Hall 1,000 million baht and Rajada city 500 million baht, etc.

4.5 Huawei
Huawei is a private enterprise established in 1988 with its headquarter in Shenzhen, China. It is a private high-tech enterprise fully owned by its employees. Huawei specializes in research and development (R&D), production and marketing of telecommunications equipment, providing customized network solution for telecom carriers in fixed, mobile, optical network and data communications network. Sales in 2002 were 2.7 billion US$.

Huawei products have been put into wide applications in over 40 countries including Germany, France, Spain, Russia, Brazil, Singapore and Thailand. Among Huawei's 22,000 employees, 10,000 more are engaged in R&D. Each year Huawei invests no less than 10 percent of its revenues in to R&D (www.huawei.com, 2007).

Huawei set up its branch in Thailand. Thai Representative Office of Huawei has a staff of over 350, 80 percent of whom are local, which has become one of the mainstream equipment suppliers in the Thai telecom market. Its products such as switch access, mobile and transmission have all realized large-scale application, with the sales reaching US$ 150 million. As early as 2000 Huawei built Thailand's national-level mobile intelligent network in collaboration with Thailand's largest mobile operator AIS, and it was officially put to operation in the same year. In March 2002 AIS started the fifth-phase capacity expansion and the network capacity has reached US$ 6.5 million (File://G:\china company\People's Daily Online ~ Opportunity, Challenge and so..., 2007). Huawei has been growing with Thailand's telecommunications industry and gradually become a major equipment supplier in the market.

The Communications Authority of Thailand (CAT), one of the two largest state-owned telecom earners in Thailand, officially announced that Huawei has been awarded its nationwide CDMA 2000 3G expansion network bid. The letter of intent (LOI) has been issued to Huawei in Thailand, and the contract, which is worth 7.2 billion baht (approximately US$ 187 million). In the project, Huawei, China's telecoms equipment supplier, will CDMA2000 lx&lx EV-DO products and solutions in 51 of the 76 provinces in Thailand. Within the turn-key project, Huawei will also provide products in the areas of transmission, service & software and data communications (File://G;\China companyVHuawei wins CAT deal.htm, 2007).

4.6 Haier Group
Haier is China's largest home appliance brand and one of the world's leading white goods home appliance manufacturers. Haier was founded in 1984 in Qingdao, Shandong Province, China and manufacturers home appliances in over 15,100 different specifications under 96 categories. By April 2006, Haier has obtained 6,189 patented technology certificates and 589 software intellectual property rights. Haier products are sold in over 100 countries. Haier is the official Home Appliances Sponsor of the Beijing 2008 Olympic Games (www.haier.com, 2007).

Haier Group has formed its second joint venture in Thailand with local partners led by TWZ Corp. (TWZ.TH), the Nation reported citing James Chau, Haier Group (Asia) managing director. Under the partnership, TWZ, a local distributor of telecom devices, will hold 51 percent of Haier Business (Thailand) Ltd., while Haier will hold 20 percent the rest will be held by other local partners. The new company will sell Haier products locally, including mobile phones, information technology products, and LCD television sets. Haier set up its first local joint venture, Haier Electrical Appliances (Thailand) Co., in 2002 with Distar Electric Corp. PCL (DISTAR.TH), which up its first local joint venture, Haier Electrical Appliances (Thailand) Co., in 2002 with Distar Electric Corp. PCL (DISTAR.TH), which makes home appliances (www.nationmultimedia.com, 2007). Thailand had the potential to be its production base for home appliances, especially air-conditioners and washing machines, for export to USA, Europe and ASEAN.

China investment to Thailand has increased since the establishment of diplomatic relations. There have been frequent mutual visits by the leaders of both countries and friendly cooperative relations have been developing rapidly in the fields of politics, economics, trade, military affairs, education, science and technology, culture, and other matters. Non-governmental exchanges have been increasing as well, greatly strengthening the traditional ties between the two nations (MOFCOM, 2005). Thailand's contemporary disposition towards China is more favorable than other ASEAN states for a number of reasons. Thailand does not have any territorial disputes with China, unlike Malaysia, Vietnam, and the Philippines, which dispute island territories and sea boundaries in the South China Sea. Thailand's sizeable ethnic Chinese population is well integrated into the Thai society and ties with China are not a factor in ethnic, political or economic considerations.

5. Conclusion
Chinese FDI in Thailand has significant by grown rate after China became a member of the WTO in 2001. Since then, China has pursued a "Go-Out Strategye with significant economic and political roles. China has the biggest international reserves in the world with continuous economic growth. Moreover, it has many potential corporations, capital, technology and experience as well as FDI policy. Motives behind her investment in Thailand are to find market in Thailand, as well as resources and materials such as rubber, oil and natural gas, and cereals. Thailand's location is advantageous in term of geo-strategy in the region. In addition, China has been supported by the policy and the privilege of Thailand and ASEAN members.

Important Chinese companies investing in Thailand include China Worldbest Group (The largest of Chinese company to invest in textile), Haier Group and Huawei (IT Service Trade and electric and electronic products) Thai-China Flavours and Fragrances Industrial (Flavours and Fragrances Industry), Tong Ren Tang (Medicine) and China State Construction Engineering (Construction). In sum, Thailand has great potential in many aspects as an investment base facilitating the distribution of merchandise to ASEAN and world markets.