Chinese Imports Threaten Key Thai Industries
The US-China trade war could worsen for Thailand, with cheap Chinese imports threatening Thai industries. During the first half of this year, Thailand faced a trade deficit of thirty billion dollars with China. The government should impose tariffs on cheap imports and promote foreign investment to support key sectors.
With the US presidential election approaching, the US-China trade war is expected to continue regardless of the winner.
Phiphat Luangnaruemitchai, chief economist at KKP Research, warns that a victory for Donald Trump would exacerbate the impact on Thailand.
Increased tariffs on China could make Thailand a transit route for trade, leading to an influx of cheap Chinese goods, which already intensifies competition and weakens Thai businesses.
In the first half of this year, Thailand's trade deficit with China reached thirty billion dollars.
The trade war has reduced global trade volumes, affecting Thailand's trade opportunities and increasing business costs.
This is particularly concerning for Thailand's steel, automobile, hard disk drive, and petrochemical industries.
The lack of capital investment in new sectors has stagnated corporate earnings and hampered stock market growth.
Phiphat suggests the government impose tariffs on underpriced Chinese imports, ensure product quality, attract foreign investment, and support the workforce to bolster new industries.
Thai businesses should innovate to compete with higher-quality products.
Phiphat Luangnaruemitchai, chief economist at KKP Research, warns that a victory for Donald Trump would exacerbate the impact on Thailand.
Increased tariffs on China could make Thailand a transit route for trade, leading to an influx of cheap Chinese goods, which already intensifies competition and weakens Thai businesses.
In the first half of this year, Thailand's trade deficit with China reached thirty billion dollars.
The trade war has reduced global trade volumes, affecting Thailand's trade opportunities and increasing business costs.
This is particularly concerning for Thailand's steel, automobile, hard disk drive, and petrochemical industries.
The lack of capital investment in new sectors has stagnated corporate earnings and hampered stock market growth.
Phiphat suggests the government impose tariffs on underpriced Chinese imports, ensure product quality, attract foreign investment, and support the workforce to bolster new industries.
Thai businesses should innovate to compete with higher-quality products.
