BANGKOK: Thailand is pressing China for deeper use of Thai local materials and suppliers, wider market access for Thai small and medium enterprises (SMEs) and investment in agricultural processing.
It seeks to reduce a trade imbalance that could reach a cumulative 12.14 trillion baht over 2016 to 2026.
Deputy Prime Minister and Commerce Minister Suphajee Suthumpun said Thailand had proposed a “co-creation” approach under which Chinese investment should generate more benefits inside the country rather than relying heavily on imported Chinese materials and components.
She said China was facing intense export competition and had been accused by several countries of dumping, while Thailand was dealing with low-priced imports, alleged nominee businesses and products that did not meet required standards.
Larger economies such as the United States and the European Union had stronger measures available to counter such pressures, she said.
Suphajee contrasted recent Chinese investment with the experience of Japanese carmakers, which spent decades building a domestic parts industry in Thailand.
Much of the newer electric-vehicle investment relies heavily on automation and robotics, limiting employment and local-component use despite receiving Board of Investment privileges, she said.
During bilateral talks with Chinese vice-premier He Lifeng on the sidelines of an Apec meeting in China in May 2026, Suphajee proposed three areas of co-operation aimed at reducing Thailand’s trade deficit.
> Increase local content: Chinese companies investing in Thailand should use more Thai-made raw materials and components, increasing domestic value-added, complying with rules of origin and reducing transshipment risks. Greater local content could also strengthen the ability of Thai-produced goods to enter overseas markets as products of Thailand.
> Open Chinese E-commerce channels to Thai SMEs: Thailand proposed a Thai Pavilion bringing together quality, standards-compliant SME products for sale to China’s consumer market of more than 1.4 billion people. The plan is intended to expand export opportunities and offset pressure from Chinese imports.
> Invest in Thai agricultural processing: Chinese technology and investment could be combined with Thai agricultural raw materials to create higher-value processed products, reduce reliance on fresh produce exports and help manage phytosanitary restrictions, seasonal supply and agricultural surpluses.
Suphajee said China had accepted the proposals in principle, particularly agricultural processing and greater access for Thai SME products.
Chinese officials also supported increasing local content but said companies would need time to adjust and build supply chains in Thailand.
She also held talks with Chinese Commerce minister Wang Wentao, who agreed to accelerate discussions between relevant agencies.
China’s Department of Asian Affairs has been assigned to coordinate with Thailand on the three areas before progress is presented to the Thai-Chinese Joint Committee, which is expected to meet early next year.
Thailand does not want to wait for the Joint Committee meeting to start work, Suphajee said.
Both sides have agreed to establish a joint working group so that the meeting can review progress rather than serve as the starting point for negotiations. — The Nation/ANN
