China vows to maintain Thailand trade balance

China has pledged to maintain its trade balance with Thailand, reducing the latter’s trade deficit by purchasing more agricultural products and supporting Thai small businesses accessing Chinese e-commerce platforms.
Following a meeting on trade cooperation with Chinese ambassador Han Zhiqiang yesterday at the Commerce Ministry, Commerce Minister Pichai Naripthaphan said the Chinese embassy addressed concerns regarding the influx of cheap, substandard goods.
“The Chinese government has consistently asked Chinese enterprises and citizens to operate in accordance with laws and regulations in their economic activities, and we support the Thai government in strengthening supervision and correcting and eliminating irregularities in accordance with the law,” the embassy said.
The embassy underscored the strong economic ties between the two nations, noting that China remains Thailand’s largest trading partner and its main market for agricultural exports.
Over the past two years, China has been Thailand’s largest foreign investor, followed by Japan.
Chinese businesses have launched 588 investment projects worth nearly US$7 billion, focusing on sectors such as electric vehicles, the digital economy, renewable energy and modern manufacturing.
Thailand would like to see more investment by Chinese investors in the Eastern Economic Corridor, particularly in printed circuit boards and semiconductors.
The investment would help generate employment and opportunities for Thai workers to improve their skills.
China continues to be the largest source of foreign tourists for Thailand.
This year, the country expects to receive around 8 million Chinese tourists, contributing over 350 billion baht in tourism revenue, the embassy said.
The embassy also addressed concerns regarding the trade imbalance between China and Thailand, emphasising the trade relationship is market-driven and influenced by supply and demand.
It said almost 80% of Thai imports from China are capital goods and intermediate goods that are necessary for local manufacturing and exports.
The embassy noted that much attention has been drawn to inexpensive Chinese goods, such as consumer products, food and clothing, which account for less than 10% of the total import value from China.
China encourages Thailand to utilise 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 digital opportunities, said the embassy.
At the recent International Live Commerce Expo 2024 on Sept 25-29, Thailand used Chinese influencers for e-commerce live-streaming to sell products to China, generating a turnover of 320 million baht in a single day.
“China would provide support and convenience for Thai SME exporters to sell products through Chinese e-commerce platforms,” the embassy said.
Moreover, the Commerce Ministry requested China help buy agricultural products from Thailand which China is ready to help through the establishment of a new checkpoint at the port of Guanlei in Yunnan province last month which allows Thai exporters to ship fruits through the Chiang Saen checkpoint in Chiang Rai directly to Kunming.
Regarding Chinese online retailer Temu entering Thailand, the portal is setting up an office and filing for business registration here, in compliance with Thai laws and regulations.
“We support the Thai government in enforcing strict regulations and prosecuting violations of laws and regulations,” the embassy added.
China is confident that its development will continue to benefit Thailand.
China was Thailand’s largest trade partner in 2023, with a total trade value of $105 billion.
Exports tallied $34.2 billion, while imports totalled $70.8 billion, resulting in a trade deficit of $36.6 billion, according to ministry figures.