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Exports

Thailand Closely Monitors Chinese Imports Amid Rising Trade Diversion

Strategic Insights

— 1 min read

Thailand's Ministry of Commerce and the Trade Policy and Strategy Office (TPSO) are closely watching Chinese imports, particularly in high-risk sectors like automobiles and consumer goods, following a significant increase in Chinese exports to the Southeast Asian nation. A recent study found that 1,149 Chinese items are being imported into Thailand, with 24 high-risk items and 166 under surveillance. The study was conducted in response to the US's new tariff rates announced on July 31, 2025, which triggered a 19% tariff in Thailand. Thai officials are concerned that excessive trade diversion could harm domestic production, particularly for small and medium-sized enterprises (SMEs), leading to reduced production capacity, job losses, and a trade deficit.

Key Takeaways:

  • Thailand's imports from China have risen sharply, with 1,149 items imported, including 24 high-risk items and 166 under surveillance.
  • The Trade Policy and Strategy Office (TPSO) is monitoring high-risk sectors like automobiles and consumer goods to curb trade diversion.
  • The study, titled "Analysis of Trade Diversion: The Case of Chinese Goods Flooding Thailand After the US Imposed a 19% Reciprocal Tariff", assesses the impact of the US's new tariff rates announced on July 31, 2025.
  • Natiya Suchinda, Deputy Director of the TPSO, recommends short-term and long-term policy responses to address the issue of trade diversion.
  • Excessive trade diversion could harm Thailand's domestic production, particularly for SMEs unable to compete, leading to reduced production capacity, job losses, and a trade deficit.
  • The TPSO has prepared proactive measures for both the government and Thai businesses to mitigate negative consequences.
  • Chinese goods are at the highest risk of flooding the Thai market, with a significant impact on the broader economy.

Statistics:

  • 1,149 Chinese items are being imported into Thailand, with 24 high-risk items and 166 under surveillance.
  • 19% tariff imposed in Thailand following the US's new tariff rates announced on July 31, 2025.
  • The study aims to assess the impact of the tariff rates on Thailand's trade balance and economic growth.
  • The TPSO has conducted a comprehensive study to evaluate risks and prepare proactive measures for both the government and Thai businesses.

Sources:

  • "Analysis of Trade Diversion: The Case of Chinese Goods Flooding Thailand After the US Imposed a 19% Reciprocal Tariff" (title of the study)
  • Natiya Suchinda, Deputy Director of the Trade Policy and Strategy Office (TPSO)

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