The injection of inexpensive and often subpar goods from China has emerged as a pressing concern in Thailand, drawing scrutiny from various stakeholders regarding its potential ramifications for local businesses and consumer welfare.
This issue gained prominence with the entry of Temu, a prominent Chinese platform that facilitates direct sales from manufacturers to customers, into the Thai market, raising fears of significant impacts on Thai enterprises and prompting discussions about necessary tax interventions.
The increasing presence of Chinese retail outlets in major Thai cities has further escalated concerns surrounding price dumping and product quality standards.
In light of these challenges, Deputy Prime Minister and Commerce Minister Phumtham Wechayachai reaffirmed the government’s stance, stating that it will not resort to trade barriers or tariffs as a response to these concerns, emphasizing the importance of maintaining healthy Thai-Chinese relations.
He highlighted that China serves as a crucial export market for numerous Thai agricultural goods, and any trade restrictions imposed on Chinese products could provoke retaliation against Thai exports entering China.
Sahassawat Kumkong, a Member of Parliament, criticized Phumtham’s comments, alleging that the government is neglecting the challenge posed by an influx of affordable Chinese goods.
Thailand has faced a trade deficit with China for 11 years in a row, with the last two years witnessing figures soaring to approximately $36 billion. Kumkong argued that Thailand should unite with other ASEAN nations, such as Malaysia and Vietnam, to collectively address the challenge of inexpensive Chinese imports.
“The Thai government must acknowledge that the influx of Chinese capital is a genuine concern,” he stated.
Thus far, the government has taken limited action to address the issue, with no formal communications sent to Chinese companies accused of engaging in dumping practices within Thailand’s online marketplace.
“The potential trade opportunities suggested by the Thai government cannot compensate for the rising trade deficit with China,” he added.
Sittiphol Viboonthanakul, another MP and chairman of the House committee on business development, emphasized the immediate need for government intervention against the influx of cheap Chinese products and related issues.
According to discussions during the recent House committee meeting, numerous Thai businesses across 25 out of 46 industrial sectors are facing severe adverse effects, including a staggering 30% decline in production levels. Additionally, reports indicate that 111 factories have shut down in recent months, as noted by the Federation of Thai Industries.
Amid these challenges, Temu is reportedly experiencing twelve-fold growth each month.
In response to the disruption caused by Temu, Prime Minister Srettha Thavisin has directed relevant government agencies to ensure that all products sold online and offline adhere to Thai laws, prioritizing consumer protection and fostering fair competition.
