Thailand Moves to Address Substandard Imports from China

Uncategorized Omar El-Sharif November 1, 2024

Thailand Moves to Address Substandard Imports from China

On November 1, 2024, the Commerce Minister of Thailand announced measures to combat the importation of low-quality goods from China due to complaints from local SMEs about unfair competition. A committee formed after discussions with multiple government agencies aims to resolve these issues within a month by ensuring better quality control and addressing the use of nominee businesses by Chinese nationals. Upcoming discussions with Chinese officials also indicate a collaborative approach toward improving trade relations.

On November 1, 2024, Thailand’s Commerce Minister, Pichai Naripthaphan, convened a meeting with representatives from 16 government agencies to discuss strategies to combat the influx of inexpensive, substandard goods from China. Minister Pichai expressed a commitment to addressing the concerns raised by Thai small and medium-sized enterprises, which have struggled to compete with these low-cost imports. He announced that the efforts of this coalition should produce noticeable results within a month. The committee formed by Prime Minister Paetongtarn Shinawatra aims to tackle not only the importation of inferior products but also the issue of Chinese businesses utilizing Thai nominees for operations, particularly in areas like Huay Kwang, Bangkok’s second Chinatown. Although Pichai refrained from explicitly attributing the situation to China, he acknowledged that numerous Chinese-made products are readily available through online platforms such as Temu and Lazada. The minister indicated that two subcommittees will be established to spearhead these initiatives. The first, under the leadership of Deputy Commerce Minister Napinthorn Srisanpang, is tasked with supporting Thai SMEs and addressing the quality concerns related to foreign goods. This subcommittee is set to implement control measures regarding product quality and engage with online marketplaces to ensure compliance with standards. The second subcommittee will focus specifically on combating the practice of using nominees in the operation of foreign businesses. Minister Pichai also noted discussions held with the Chinese ambassador, Han Zhiqiang, regarding these trade issues and conveyed China’s willingness to cooperate in maintaining strong diplomatic relations. Furthermore, Minister Pichai’s forthcoming visit to China from November 4 to 6 is aimed at securing a collaborative approach concerning trade and investment strategies. In addition to tackling imported goods, the minister revealed that the Thai Food and Drug Administration (FDA) will intensify its screening processes for imported fruits and vegetables to safeguard public health. Yutthana Poolpipat, deputy director-general of the Customs Department, affirmed that the department will henceforth permit the importation of goods meeting the Thai Industrial Standards Institute (TISI) criteria. The FDA plans to collaborate closely with the Public Health Ministry to routinely assess the quality of fresh produce sold in both urban and rural markets. Moreover, all products sold in Thailand will be mandated to carry labels indicating product quality. The Thai government’s decisive actions signify a proactive approach to safeguarding domestic manufacturers and consumer welfare in the face of challenges posed by inexpensive imports from abroad.

In recent years, Thailand’s market has experienced significant impacts from the influx of inexpensive imports, particularly from China. Thai SMEs have voiced concerns about their inability to compete against these low-cost goods, which often compromise quality. The government has recognized the urgent need to address these issues to protect local businesses and consumers alike. This situation has prompted the establishment of a task force aimed at ensuring stricter control over imported products, thus promoting fair competition and upholding national standards. Moreover, there are ongoing concerns regarding the use of nominee businesses by foreign nationals, which poses further challenges to local regulations and economic integrity.

In conclusion, the Thai government’s initiative to crack down on cheap, substandard imports from China reflects the administration’s commitment to protecting local businesses and consumer safety. By establishing dedicated subcommittees to oversee product quality and the legitimacy of foreign business operations, Thailand aims to bolster its SME sector and ensure higher standards in the market. These efforts, coupled with cooperative agreements with China, are anticipated to yield significant results, enhancing the overall trade landscape in Thailand.

Original Source: asianews.network