BANGKOK — The Chinese Embassy has addressed the issue of Chinese Capital and E-Commerce Entering Thailand.
On September 4, the Facebook page of the Chinese Embassy Bangkok to Thailand published a statement from the spokesperson of the Chinese embassy in Thailand, responding to questions from Thai media about Chinese investment in Thailand, which has been discussed in the media and on social media for some time. This includes the issue of Chinese e-commerce, which is currently under tax scrutiny by Thai authorities.
The Chinese embassy spokesperson explained that almost 80 percent of the goods that Thailand imports from China are capital goods and intermediate goods that are used for value-added production and then exported. The so-called low-cost goods that attract public attention are mostly daily necessities, food, health products, clothing and accessories, which account for less than 10 percent of the total import value from China.
These goods account for only half of Thailand’s agricultural exports to China. These agricultural products, such as Thai durians exported to China and some temperate fruits from China imported to Thailand, meet the specific needs of people in both countries.
According to media reports, some Chinese goods are not certified by the Thai Food and Drug Administration (FDA) or do not comply with Thai Industrial Standards (TISI) and other standards. The Chinese government has repeatedly called on Chinese companies and citizens to strictly comply with laws and regulations abroad. We support the Thai government in enforcing strict regulations and prosecuting violations of laws and regulations.
“In the past, Thai small and medium-sized enterprises (SMEs) have faced competition from Chinese goods, especially daily necessities. Combined with other negative factors, this has made it difficult for SMEs to survive. We are well aware of the importance of these businesses and understand their difficulties.
We believe that these enterprises should be supported and encouraged, and we are willing to create more business opportunities to support their development within the framework of sustainable economic and trade cooperation between China and Thailand.”
Media reports and cases investigated by Thai police indicate that some Chinese nationals in Thailand are involved in the service industry, with some involved in pornography, gambling and drug trafficking. Some have circumvented legal restrictions by using “nominee shareholders”
“The Chinese government is assisting Thailand in investigating and prosecuting these alleged violations of local laws in accordance with the law and maintaining a fair market order and lawful business environment. In fact, the law enforcement agencies of the two countries have long cooperated effectively in combating black and grey business,” the spokesperson said.
As far as the new challenges posed by cross-border e-commerce platforms are concerned, these are new business models in the age of the digital economy. Different countries are facing challenges in the development of these platforms.
While e-commerce helps to simplify business processes, reduce transaction costs and provide consumers with more convenient options — which are its unique advantages — it also creates challenges such as increased competitive pressure on traditional business models and new challenges in the areas of governance, product quality and safety, and protection of the rights and interests of both businesses and consumers.
Therefore, we need responsive measures to leverage strengths and avoid weaknesses, to seek advantages and minimize disadvantages, and to effectively promote economic and social development. The key to this is the use of e-commerce.
Thailand had previously used e-commerce livestreaming to sell products to China, generating a turnover of 4 billion baht within two days. The country also used e-commerce livestreaming to promote tourism to Chinese tourists, attracting more than 20 million viewers and generating transactions worth 100 million baht.
China welcomes and encourages Thailand to utilize new e-commerce models to expand into the Chinese market and is willing to deepen cooperation in developing digital capabilities, share experiences in regulating the e-commerce market and jointly seize new opportunities in the Internet era.
The speaker also mentioned the role of Chinese companies in Thailand’s development. There are over 1,000 Chinese companies in Thailand, which have submitted 588 investment projects worth nearly USD 7 billion over the past two years. Most of these investments are in the electric vehicle industry, digital economy, new energy and advanced manufacturing, which fits well with Thailand’s development plans.
The total value of production in the Thai-Chinese Rayong Industrial Zone exceeds USD 30 billion, with 80 percent of production exported to international markets. Chinese companies have also helped to increase employment and train personnel.
It is estimated that Chinese companies have created over 300,000 jobs in Thailand. These workers not only enjoy relatively stable wages, but also receive good training and become better skilled workers.
Thailand is also an important destination for Chinese tourists. Before the COVID-19 pandemic, up to 11 million Chinese tourists visited Thailand. This year, Thai authorities expect 8 million tourists to visit, generating over 350 billion baht ($10 billion) in tourism revenue. China is confident that its development will continue to benefit Thailand.
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