PUBLISHED : 12 Aug 2024 at 18:34
Thailand is grappling with a significant influx of low-cost and substandard goods from China, raising alarms among businesses and consumers alike. Recent developments have intensified concerns, particularly following the entry of Temu, a platform selling affordable products directly from Chinese manufacturers in the Thai market.
Industry stakeholders fear that this could lead to the extinction of local businesses and have begun calling for urgent tax regulations to mitigate the impact. The expansion of Chinese physical stores in major Thai cities has further fueled worries about dumping prices and declining product quality.
In a recent address, Deputy Prime Minister and Commerce Minister Phumtham Wechayachai emphasized that the Thai government remains committed to maintaining positive relations with China and will not impose trade barriers in response to these challenges. He pointed out that China is a crucial export market for several Thai agricultural products and warned that retaliatory measures could negatively affect Thai exports.
Critics, including People’s Party MP Sahassawat Kumkong, have called out the government’s inaction, arguing that the current administration is failing to address the surge of inexpensive Chinese products that threaten local industries. Kumkong noted that Thailand has recorded a trade deficit with China for 11 consecutive years, with a staggering deficit of US$36 billion (1.27 trillion baht) over the past two years alone. He suggested that Thailand should pursue collaborative efforts with other ASEAN nations affected by similar challenges.
Highlighting the urgency of the situation, Sittiphol Viboonthanakul, another People’s Party MP, reported that Thai manufacturers across 25 of 46 industrial sectors are suffering significantly, with production declining by approximately 30%. To date, 111 factories have reportedly shut down in recent months, demonstrating the severe impact on the local economy. Meanwhile, Temu has seen exponential growth, expanding twelve-fold each month.
In response to the outcry regarding Temu, Prime Minister Srettha Thavisin has directed relevant government agencies to ensure that all imported products, whether sold online or offline, comply with Thai regulations to protect consumers and promote fair competition.
