The surge of inexpensive and substandard goods from China through both online and physical channels has emerged as a significant concern in Thailand, with various stakeholders worried about its effects on local businesses and consumer welfare.
This issue gained renewed attention following Temu, a major Chinese platform that sells affordable products directly from manufacturers without intermediaries, announcing its entry into the Thai market. This move has raised fears that it could lead to the downfall of Thai businesses and has prompted calls for tax measures to mitigate the impact.
Additionally, there is alarm over the growing number of Chinese brick-and-mortar stores opening in key cities throughout Thailand, which raises concerns regarding price dumping and product quality.
In response to these issues, Deputy Prime Minister and Commerce Minister Phumtham Wechayachai emphasized on Sunday that the Thai government will not resort to imposing trade barriers or tariffs to address these problems, as it would jeopardize Thai-Chinese relations.
He noted that since China is a significant export market for various Thai agricultural products, imposing trade barriers on Chinese goods could trigger retaliatory actions against Thai exports to China.
Chon Buri People’s Party MP Sahassawat Kumkong criticized Mr. Phumtham’s comments, accusing the Pheu Thai Party-led government of failing to take action against the influx of cheap Chinese products.
Thailand has recorded a trade deficit with China for 11 consecutive years, with the past two years seeing deficits reaching up to USD 36 billion (approximately 1.27 trillion baht). He suggested that Thailand should collaborate with other ASEAN nations facing similar challenges, such as Malaysia, Indonesia, and Vietnam, to collectively address the issue.
“The Thai government must first acknowledge that the influx of Chinese capital into Thailand and other countries is a significant problem,” he asserted.
So far, the Thai government has yet to implement any substantial measures to address this issue, not even contacting the Chinese company accused of dumping products in Thailand’s online market, he added.
“Potential trade opportunities pursued by the Thai government will not compensate for the increasing trade deficit with China,” he stated.
Sittiphol Viboonthanakul, a list-MP of the People’s Party and chairman of the House committee on business development, highlighted the urgent need for the government to take effective action against the influx of cheap Chinese products and associated challenges.
During a recent House committee meeting, he mentioned that many Thai business operators in 25 out of 46 industrial sectors have been severely impacted, with production in these sectors declining by approximately 30%. Furthermore, he noted that the Federation of Thai Industries reported the closure of 111 factories in recent months.
Meanwhile, Temu has experienced a twelve-fold growth each month, according to Mr. Sittiphol.
In response to the disruption caused by Temu, Prime Minister Srettha Thavisin has directed relevant government agencies to find a way to ensure that all imported goods sold online and offline in Thailand comply with Thai laws, prioritizing consumer protection and fair competition.
