Abstract: Due to high dependence on the Malacca Strait, there has been ideas concerning expanding new channels in the Asia Pacific region. Isthmus of Kra Canal is one of the highly concerned issues. From the perspective of geo-economics, the paper divided the radiation scope into three spheres and discussed the demand, influence and countermeasures about the starting of the Kra Canal. Starting the Kra Canal would have direct effects and spillover effects on Thailand’s economic and social development. The total effect would influence the development of regional economic development in Thailand, and would further impact the first sphere of countries bordering Thailand and geographically adjacent countries. Due to their own economic interests and various development orientation considerations, these countries may have different views concerning starting the Kra Canal. The second sphere countries, mainly including China, Japan and Korea, generally supported and actively participated in promoting Kra Canal so as to improve channel and prosper trade. The third sphere of countries like the United states and European countries had sustained attention on Kra Canal and expected to coordinate international relations on the background of reconstructing world trade order while expanding their own interests. Generally speaking, prosperity of the global trade and accelerating economic development as well as obviously rising trade volume in the Asia Pacific region bring the necessity for the construction of Kra Canal from a global perspective. To Malacca Straits, Kra Canal is a diversion rather than a substitution. The relationship between them is complementary and competitive. Starting the Kra Canal may follow the historic trend of global trade facilitation and provide more in-depth trade cooperation and broad development space. Related countries may go through scientific argumentation to determine the concrete plan, carry out complete regional consultation for the top-level design. China may participate in the cooperation and construction of the Kra Canal.