Cheap Chinese imports have significantly impacted Thailand, leading to factory closures, declining industrial output, and weakened sectors like manufacturing, e-commerce, and electric vehicles. In 2023 alone, nearly 2,000 factories shut down, and industrial output fell by 2% in the first half of 2024, contributing to slower growth and deflationary pressures.
Key sectors, including automotive and steel, face stiff competition from subsidized Chinese companies like BYD and Neta. The entry of Chinese e-commerce platforms such as Temu further threatens local businesses, with sales dropping by 10-20%. Experts warn that this influx jeopardizes Thai SMEs and traditional industries by replacing local products with lower-quality Chinese imports.
While China claims its exports support regional development through investments—for example, nearly $7 billion in Thai projects—critics argue it risks turning Thailand into a transshipment hub for Chinese goods. Thailand has responded with stricter import controls, investigations into platforms like Temu, and measures to promote local sourcing, especially in the EV sector.
Looking ahead, Thailand may face ongoing challenges as China’s overcapacity shifts more exports to Southeast Asia, emphasizing the need for strategies to support local industries, SMEs, and economic stability.