Chinese capital expands beyond tourism into a Thai business base

For years, when people spoke of “Chinese people” and Thailand, the image many had in mind may still have been tour groups, buses and famous tourist districts.

But a closer look shows that the relationship between “Chinese capital” and “Thailand” is now changing significantly.

What is happening is not only travel for tourism, but an effort to establish a foothold in investment, business operations, residential rental and even the relocation of production bases.

Surachet Kongcheep, Head of Research & Consulting at Cushman & Wakefield Thailand, said the interesting point was that, despite recent negative news about safety and a Thai economy that is no longer as heated as in the past, Thailand remains on the “radar” of Chinese nationals.

This is reflected in several Chinese property-agency websites that continue to rank Thailand among the leading countries in which Chinese buyers are interested in purchasing property, with Thailand rarely falling out of the top 10.

But the key point is not only about “buying condominiums”, because what these articles are selling is “returns from Thailand”.

When Thailand is marketed as a rental-income machine

One article recommended on a Chinese property website carried a headline roughly asking whether property in Thailand could be rented out and what rental levels were like.

Its content did not discuss only buying for residential use, but went deeper into short-term rental models through online platforms, as well as long-term rental through agents.

It analysed tenant groups ranging from foreign tourists and foreign workers to expatriates moving in for long-term stays.

Notably, it clearly identified “rental ranges with high market demand”, such as rents not exceeding THB10,000 per month, which accounted for 16.1% of demand; rents of THB10,000-20,000 per month, the highest at 32.1%; and rents of THB20,000-35,000 per month, at 28.2%.

But the highlight was its discussion of “returns from rental”.

The article said property in Bangkok could generate high returns of 7-8% a year, averaging 5.5-6%.

It compared this with rental yields in China of only 2.66% and Thailand’s 6.46%.

From the perspective of Chinese investors, Thailand offers returns almost twice those in China.

Of course, figures of this kind may be a “selling point” used by brokerage firms.

“Achieving returns of 7-8% in the current market is not easy.

But what matters more is the mindset of foreign investors, who are no longer looking at Thailand merely as a cheap tourist city, but as an investment asset.”

From tourists to entrepreneurs and investors

In the past, when people talked about Chinese nationals in Thailand, the most visible aspect was “tourism”.

But over the past few years, the picture has begun to change, as the arrival of Chinese nationals has expanded from “tourists” to “investors”.

A key factor has been the trade war and conflict between China and the United States.

When the US erected tariff barriers against Chinese goods, many companies had to look for new production bases to avoid higher tax costs.

“Thailand” became one of the important targets, especially for companies producing goods for export to the US and allied countries.

Figures from the Board of Investment (BOI) clearly reflect this.

In 2017, Chinese investors were approved for investment promotion worth only THB11.371 billion, but in 2025, the figure surged to THB198.158 billion.

Although China ranked third after Singapore and Hong Kong, it stood out clearly in terms of the “number of projects”, with 984 projects, far more than Singapore’s 425.

This means Chinese capital may not be the largest per project, but the number of Chinese players entering Thailand has “increased enormously”.

If Hong Kong is included, the picture becomes even clearer.

In 2023, investors from Hong Kong were approved by the BOI for only THB20.027 billion, but in 2025, the figure rose to THB224.25 billion.

“This level of growth reflects how many companies are accelerating relocation or diversifying risk away from China.”

As Chinese companies increase, Chinese nationals follow

Investment does not end with building factories, because every factory and every company needs people to come in and operate the business.

This is why the number of “foreign juristic entities” in Thailand has increased significantly.

Data dated Monday (March 30, 2026) showed that juristic entities with funding from China had a combined registered capital of THB509.596 billion, ranking third after Japan and Singapore.

But over the past three to four years, “China” and “Singapore” have been the two countries showing the most consistent increases, in contrast with Japan, where growth has clearly begun to slow.

The number of new Chinese companies in Thailand has increased steadily by 51% since 2022.

As the number of companies rises, demand for office space, factories, warehouses and housing also increases.

Bangkok’s office market is beginning to see Chinese companies expand beyond the Rama IX and Ratchadaphisek zones into more locations, as space in their original areas becomes harder to find and costs rise.

Many companies unfamiliar with Bangkok may begin in zones known to Chinese nationals before spreading into new areas.

This is an important signal of “long-term establishment”.

Chinese nationals overtake Japanese in Thailand’s labour market

Another figure reflecting the change is the number of work permits.

In the past, Japan had long held the top position as the nationality with the highest number of foreign nationals granted work permits in Thailand.

But that picture has now changed.

Data for November 2025 showed that 56,202 Chinese nationals held work permits in Thailand, more than twice the number of Japanese nationals, at 21,536.

Looking back to 2021, Japanese nationals were still ahead at 27,394, while Chinese nationals numbered 24,571.

Since 2022, however, the number of Chinese nationals has continued to rise, moving in the opposite direction from Japanese nationals, whose number has continued to fall.

This is not only a matter of foreign labour, but also a reflection of a changing “Thai economic structure”, moving from one that previously relied mainly on Japanese capital into an era in which “Chinese capital” is playing an increasingly important role.

Thailand’s opportunities and future challenges

The inflow of foreign capital helps stimulate the Thai economy in many dimensions, including the office market, industrial estates, warehouses, ready-built factories and the residential market, especially locations near electric rail lines or areas close to industrial estates.

When foreign nationals come to work long-term, they need housing, offices, and to actually live in the country.

This is turning Thailand into an Asian “option”.

But the key question is how ready Thailand is for this kind of growth.

If the inflow takes place properly, with real investment, real employment and real tax payments, it could become a long-term economic driver.

But if legal loopholes are used to hold assets on behalf of others, or if businesses are illicitly operated in categories different from those permitted, what is an “opportunity” today could also become a “problem” in the future.

That may be why Thailand today is not only a “destination for Chinese tourists”, but is increasingly becoming a “new home for Chinese capital” with each passing year.