The influx of cheap goods from China into Thailand has raised concerns that such imports are undercutting local businesses, prompting calls for the government to impose tariffs and import bans to tackle the onslaught.
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Since February last year, the share of Chinese imports to total imports has soared in Thailand, reaching a peak of 37.4 per cent in June and only decreasing slightly to 33.6 per cent in September.
Several sectors experienced substantial increases in Chinese import shares in the first eight months of 2024, including plastic and rubber products (43.5 per cent), pulp and paper items (33.2 per cent), metallic products (42 per cent), and automotives (35.2 per cent).
These imports, most of which are severely underpriced, are seen as economic threats to the survival of local firms. One example is Chinese EV maker BYD’s aggressive price cuts in July last year – by as much as 340,000 baht (US$9,800) or 25 per cent of the original vehicle price – which sparked backlash and triggered an investigation by Thailand’s consumer watchdog.
Official data revealed the list of products affected by the Chinese import surge matched those of industries experiencing an increase in business closures in the first nine months of 2024.
Many local firms from industries such as steel and auto parts have demanded that the government take concrete action to stop Chinese imports. The Thai government’s response so far has been mild. It extended its 7 per cent value-added tax to incoming purchases valued at less than 1,500 baht and stepped up law enforcement on value-added taxes and customs duties, as well as on product quality standards.