The Governance of the Hedging Strategy: Managing Thailand’s Complex Interdependence with the United Stated and China

Abstract

This research examines the governance of Thailand’s “bamboo diplomacy” or hedging strategy – a strategic posture adopted by a middle power managing complicated interdependence with both great powers: security dependency on the United States and economic dependence on China. While Thailand’s hedging strategy has been widely studied, the available literature rarely explores into the internal governance processes that make this strategy operationally effective. This study aims to: 1) investigate how the Thai state manages conflicting pressures through institutional coordination and decision-making; 2) examine the role of soft power as a supporting instrument of the hedging strategy; and 3) identify governance challenges in achieving policy coherence across sectors. The article utilizes qualitative research that includes documentary analysis of relevant government policies and official discourses. The core argument posits that Thailand’s hedging approach is more that just a passive diplomatic stance; it is an active governance process that entails ongoing discussion, coordination, and compromise among multiple state actors, particularly security and economic agencies. In this process, soft power is strategically employed to create diplomatic space and reduce external friction. However, a critical governance challenge remains establishing policy coherence within the state apparatus itself.