Chinese investment and tourism are critical to Southeast Asia’s economies, but a surge of cheap, low-quality Chinese goods is threatening local businesses, prompting countries like Thailand to take action, according to VoaNews.
Thailand’s economy heavily relies on trade with China, which totaled over $126 billion last year. However, industries like manufacturing are struggling. In 2023, 2,000 factories in Thailand closed, resulting in significant job losses. Local businesses at Bangkok’s Bobae Shopping Mall, a hub for retail and wholesale, are visibly affected, with many units shuttered despite the holiday season.
Banchob Pianphanitporn, owner of Ben’s Socks, has experienced a 50% drop in sales over the past decade. “My socks are better quality, but Chinese imports sell for nearly half the price,” he said. Retailers like Banchob are turning to social media platforms like TikTok to stay afloat.
The Thai government is stepping in with measures like stricter import inspections and a 7% value-added tax on goods under 1,500 baht ($43.77). These efforts have reportedly reduced low-quality imports by 20% since July, but local sellers like Pam, who runs Pretty Baby, and Prang, co-owner of V.C. shop, say the market is still flooded with cheap alternatives.
Thailand isn’t alone. Other Asian nations are taking steps to protect their economies. India plans a temporary 25% tax on steel imports, Indonesia is proposing a 200% tariff on some goods, and Vietnam recently banned Chinese e-commerce platforms Shein and Temu for failing to register their businesses.
“Cheap Chinese imports are squeezing local producers and sparking outrage over unfair competition,” said Nguyen Khac Giang, a visiting fellow at ISEAS. In response, Vietnam is tightening regulations and scrapping tax exemptions for unregistered platforms.
Despite these efforts, Southeast Asian nations are cautious not to directly accuse China of unfair trade practices. “China’s scale and low production costs are unmatched,” noted Zachary Abuza, a Southeast Asia expert. “Thailand and Vietnam may be looking to court Chinese investment to create local production ecosystems instead.”
The battle against cheap imports underscores the challenge of balancing economic reliance on China with protecting local industries. For now, Southeast Asia’s pushback is a complex dance of diplomacy, regulation, and innovation.
Photo: Image-Source
