After a lean few years, Thailand’s economy is showing signs of improvement. Deflation has given way to inflation of almost 3%, while policymakers are upgrading growth forecasts. With the recovery still modest, however, officials have little reason to rush: Absent a major upheaval, they can take their time lifting interest rates from historically low levels. It's an encouraging picture — but one that tells only part of the story.

That’s why Bangkok is becoming cautiously bullish. The vice finance minister recently compared the vibe with the old good days he enjoyed working at investment bank Credit Suisse in the 2010s. Yet Thailand has little control over the forces driving this transformation. Like most governments, it can only try to capture the benefits and contain the damage. That balancing act will only get harder. The remaking of global trade could shape the world economy for decades, and Thailand naturally wants a piece of the action.

But it also needs to protect domestic industry — and the international manufacturers that made the nation a production hub in the early days of globalization — from the upcoming disruption. Japanese companies, for example, invested heavily in a hunt for low-cost factory sites. They’re watching the flood of merchandise from China with trepidation and would be remiss not to consider the point at which they scale back their presence or even exit.

Such multinationals helped turn Thailand into one of the most promising emerging markets of that period before it became the epicenter of the Asian financial crisis. It's some of that early vigor that the nation is seeking to recapture, without the excesses. But that’s easier said than done.

The trick will be taking the right incremental steps. It would be tragic to miss out on a slice of this boom while trying to defend against the last one. Recent steps to cushion car makers from imports of low-priced Chinese electric vehicles reflect this delicate balance.

The measures aren't draconian, but they may be enough to stave off an implosion. That's important. The auto industry accounts for about 3% of gross domestic product and employs more than half a million people. A top-level panel last month approved changes to excise taxes for EVs. Fully imported cars will be subject to the highest rate, locally made vehicles the lowest, while models that rely on components from abroad will get something in the middle. Toyota Motor Corp. recently pledged to remain in the country, but wants officials to keep listening.

The pressure for assistance won't go away. China supplied almost all of Thailand’s EV imports last month. Nor will the clamor be confined to autos. Asia is absorbing around half the Chinese products that have been redirected from the US, according to the International Monetary Fund. But don't look for leaders to become vocal critics of Beijing or its trade practices as US President Donald Trump has done. They have far less room to maneuver. China is their biggest economic challenge, an indispensable commercial partner and a powerful neighbor.

And as enthusiastic as Thailand is to cash in on AI, it's trying to set some guardrails around data centers. Concerned about the heavy use of water and electricity, the government this week established new rules for approving projects. Developments that use Thai workers and local components will be looked upon favorably.

Thailand is asking some important questions without looking askance at tectonic shifts reshaping global commerce. Policymakers may not see shocks on the horizon, but forces well beyond their control are gathering pace. Watch how this economy, which often flies under the radar, responds. Becoming a template for navigating the next phase of globalization would be a far better legacy than being remembered as the spark of a crisis.