Flood of cheap Chinese goods brings calls for crackdown

Thailand needs to crackdown on illegal Chinese businesses flooding the country with cheap products, while also encouraging domestic operators to compete by boosting brand value, experts said on Tuesday.

Thai tourism operators have long complained of zero-dollar tours, but Chinese businesses are now inundating Thailand with cheap products in other sectors, leaving local businesses unable to compete.

The invasion of Chinese restaurants, supermarkets and e-commerce platforms is growing by the day, according to experts and Thai businesses affected.

Sakchai Pattarapreechakul, executive director of NCC Management and Development

The number of Chinese exhibitors at Bangkok’s Queen Sirikit National Convention Centre (QSNCC) soared 30% in the first eight months of this year from the same period in 2023, said Sakchai Pattarapreechakul, executive director of QSNCC operator NCC Management and Development.

“In 2023, only a few Chinese business or factory operators attended exhibitions [at the centre], but the number has been rising fast this year,” he said.

The flood of cheap Chinese products comes at a time of rising household debt and declining purchasing power in Thailand.   

Sakchai emphasised that while the influx of Chinese businesses may help boost domestic consumption, government agencies must make sure they comply with Thai laws.

Thais have been rocked by revelations of Chinese criminal networks operating in the entertainment, gambling, drug and human trafficking, real estate, money laundering and prostitution enterprises with help from corrupt local officials.

“We want the government to promote Thailand as a regional market place,” Sakchai said, adding that domestic consumption has been slow to recover after Covid-19 compared with foreign markets.

Adith Chairattananon, secretary-general of the Association of Thai Travel Agents

Adith Chairattananon, secretary-general of the Association of Thai Travel Agents, said Thai operators must adapt to compete with Chinese rivals.

He said Chinese products are flooding Thailand via online channels, which enable Thai consumers to access cheaper products amid declining purchasing power.

Thai businesses had to be bolder in competing with their Chinese counterparts in terms of quality while boosting the value of Thai brands, he emphasised.

He pointed out that Thai consumers paid less attention to Thai products. He also blamed the government for failure to launch policies to tackle people’s issues.

Thailand should boost confidence among consumers that the country can compete in the global market, he said.

Tourism Authority of Thailand governor Thapanee Kiatphaibool

Tourism Authority of Thailand governor Thapanee Kiatphaibool confirmed that the government is monitoring Chinese businesses for compliance with Thai laws.

While local consumers want Chinese products at cheap prices, clear tariff measures on these items are important, she said.

However, duties and other restrictions on goods covered not just Chinese operators but also businesses from other countries, Thapanee added.