Bangkok – For many countries in Southeast Asia, Chinese investment and tourism play a crucial role in their economies. However, the influx of cheap, low-quality Chinese products flooding markets across the region has raised concerns about their impact on local businesses, experts say.
Thailand, in particular, has been heavily affected by this issue. Last year, bilateral trade between Thailand and China reached over $126 billion, with direct Chinese foreign investment significantly contributing to the Thai economy. However, the country’s manufacturing industry has seen a decline, with 2,000 factories closing in 2023 and thousands of jobs lost, according to data from the Department of Industrial Works.
Local business owners have long lamented the fact that low-quality Chinese goods are undercutting their businesses. One example of this is the Bobae Shopping Mall in Bangkok, where many shops have had to close down despite it being peak season and Christmas just around the corner.
Banchob Pianphanitporn, the owner of Ben’s Socks, has been in business for 26 years and manages four units in the mall. He also has one factory in Thailand that employs 24 staff. However, he has seen a significant drop in sales over the past decade due to Chinese imports.
“I would say our sales are down by 50% since 10 years ago,” he told VOA. “I sell socks for 150 baht ($4.38) per dozen, but if it was a Chinese product, they would sell it for 85 baht ($2.48). Customers with a low budget will say our socks are expensive, without considering the materials. Our socks are made with better materials and are more flexible.”
The slow growth of Thailand’s manufacturing industry has also contributed to a sluggish year for the economy. Forecasts predict a growth rate of only 2.3% to 2.8% in 2024, which is lower than its regional neighbors. Although the Bank of Thailand forecasts a 3% growth in 2025, concerns from business owners remain.
Banchob points to the closure of several units in his mall, blaming Thailand’s economy. In an effort to stay afloat, he has turned to social media to promote his business and attract more customers.
“Social media is a must. I’m on TikTok and I create a lot of content. I have to work harder to let people know that Ben’s Socks, made in Thailand, is still here,” he added.
In response to the growing concern over low-quality imports, Thai government spokesperson Sasikarn Wattanachan has announced a 20% decrease in such imports since July. Authorities have also implemented stricter inspections of cheap imports, focusing on agricultural, consumer, and industrial items. Additionally, Thailand has introduced a 7% value-added tax on imported goods under 1,500 baht or $43.77, as reported by the Bangkok Post.
However, for other sellers and store owners, these measures have not made much of a difference. Pam, a seller at Pretty Baby, a baby clothes store in the Bangkok mall, says the seemingly endless supply of Chinese products has affected their sales.
“Chinese products are selling a lot, but we don’t have that much stock. The government still allows these products to be imported. Our sales have dropped a little bit,” she told VOA.
For some customers, retaining regular customers is key to competing with cheaper alternatives. Prang, part-owner of V.C. shop, a clothing store specializing in loose-fitting clothing known as elephant pants, says the aggressive advertising from Chinese manufacturers on social media has had a significant impact.
“Pants can sell here for 70 baht ($2.04), but Chinese sell them for 50 baht ($1.46). In the past, we could tell the difference between Thai and Chinese products, but now the Chinese copies look 99% the same. We cannot compete with their prices, but we are confident in our material and quality, and we can keep our customers,” she added.
Thailand is not the only country in Southeast Asia trying to reduce the influx of low-quality Chinese imports. In India, a proposed temporary tax of 25% on steel imports is likely to be imposed to curb cheaper alternatives from China and boost production from Indian manufacturers, as reported by Reuters on December 17.
Similarly, in Indonesia, protests against Chinese imports have prompted Jakarta to propose a 200% tariff on
