Joint Study on the Development of Strategic Framework for China-Thailand Economic Cooperation: With Special Reference to Geographical Positioning and Spatial Linkages (Phase 2) was established by the agreement between Prime Minister of Thailand and China in response to the Free Trade Area Agreement and also for the cooperation strategic framework between Thailand and China. For the cooperation framework, the prime minister of Thailand assigned Mr. Somkid Jatusripitak, Deputy Prime Minister and Deputy Secretary-General of Office of National Economic and Social Development Board: NESDB (Mr. Somjet Terakoop) to sign the agreement with Yunnan Provincial Development and Reform Commission Foreign Capital Utilization Division at Kunming on June 17-18, 2003. This agreement was an international research project between the two countries. From the commitment, the Chinese set up one team of researchers to work with Thai team. The Thai project director acted as team leader. Each team visited each other four times. When the project was finished, the report was approved by ministerial steering committee of both countries in order to set up the budget. After the signed agreement, it was put under the management board in Yunnan Provincial Development and Reform Commission Foreign Capital Utilization Division. Currently, there is no party is working on the project directly. At present, the project is finished and awaiting the Chinese team to set up processing before proceeding to Phase 2. With China’s entrance into the WTO, its economy has more closely integrated with the global system. As a WTO member, China plays an increasingly important role in the world economy and bears a strong impact on other countries, due to its competitive advantages in labour and raw materials. Membership also dictates, however, that China comply with WTO rules and regulations, especially in terms of fairness and transparency towards competitors. China, with its enormous land size and large population of 1.3 billion, represents a substantial opportunity for Thailand to expand its export market . Considering the numerous provinces of China, there are different economic structures with different manufacturing environments, tastes, styles and consumer buying power. It is worthwhile to note that some of these provinces are Thailand’s competitors, while some may become new markets for Thailand’s products Due to its proximity to South China, Thailand has the potential to be a nexus for ASEAN and GMS countries to develop cooperation on fundamental economic issues to which China has agreed. It also has the potential to spearhead trade and investment development, establishing economic links between China and other countries in the region. However, as Thailand and China are not geographically connected, their logistic links would have to pass through Myanmar and Laos, via road and railway; land transport will be necessary for energy development as well, in electricity lines, oil pipelines, and dams. Therefore, to be a reality, Thai-Chinese cooperation must also involve neighboring countries..