The two sides reached the agreement during a visit to China by the top Thai military brass.
Under the new agreement, the Thai Defence Technology Institute will work with China to develop new multiple rocket launchers called "DTI-1G [Guided]" which will have a greater range than existing systems, Defence Minister Sukumpol Suwanatat said.
In an earlier joint deal, Thailand and China developed the DTI-1 system, which had a range of between 60 and 180 km, but reportedly lacked accuracy.
Thai and Chinese defence ministries have also agreed to hold a joint military exercise involving their air forces for the first time.
"We will need to discuss more details of this because Thailand and China have different military doctrines in the aviation area," Sukumpol added. PTI JB
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