Many Southeast Asian countries are dealing with an influx of cheap, low-quality Chinese goods saturating their markets, raising concerns about the weakening production capabilities of local businesses and prompting countries like Thailand to find ways to combat the impact of low-priced Chinese products.
In Thailand, the three main economic industries are manufacturing, agriculture, and services. According to data from the Department of Industrial Works, Thailand’s manufacturing sector has been experiencing a decline, with 2,000 factories shutting down in 2023, resulting in the loss of thousands of jobs.
For a long time, business owners have been angered by the undercutting of Thai products by low-quality cheap Chinese goods.
The slow development of Thailand’s manufacturing sector has led to economic stagnation this year. Predictions suggest that Thailand’s economic growth rate for this year will be between 2.3% to 2.8%, lower than neighboring regions. While the Thai central bank forecasts a growth rate of 3% for 2025, business owners remain concerned.
On December 9th, Thai government spokesperson Sasikarn Wattanachan stated that substandard imports in Thailand have decreased by 20% since July. Authorities have implemented stricter inspections on cheap imports, focusing on agricultural products, consumer goods, and industrial products. According to the Bangkok Post, Thailand has imposed a 7% value-added tax on imported goods priced below 1,500 Thai baht or $43.77.
Meanwhile, more Asian countries are seeking ways to protect their manufacturing industries and trade.
A Reuters report on December 17th mentioned that India might impose a 25% temporary tariff on imported steel to curb cheap Chinese steel and enhance India’s manufacturing capabilities.
In Indonesia, protests against Chinese imports have led Jakarta to impose a 200% tariff on certain imported clothing and ceramics to protect small and medium-sized enterprises.
In Vietnam, where Beijing is Hanoi’s largest trading partner with bilateral trade exceeding $171 billion in 2023, the government is also taking action against cheap Chinese goods.
At the end of November, Hanoi cracked down on Chinese online retailers Shein and Temu for failing to complete commercial registration within the timeframe stipulated by the Vietnamese government.
Researcher Nguyen Khac Giang from the Institute of Southeast Asian Studies (ISEAS) in Vietnam expressed that “cheap Chinese imports from platforms like Shein and Temu are flooding the Vietnamese market, squeezing local producers and sparking anger over unfair competition.”
He added, “In response, the government is taking steps to combat this by abolishing tax exemptions, tightening regulations, and cracking down on platforms not registered in Vietnam. It’s a bold move to curb China’s e-commerce giants and protect local businesses, but I believe this battle is far from over.”