US-China trade war ‘poses a threat to 30 Thai industrial sectors’

The ongoing trade war between the US and China is impacting 23 Thai industrial sectors, a number that could rise to 30 next year without government intervention, according to the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB).  

The committee expressed strong concerns about the increasing flow of Chinese goods into Thailand and called for integrated action to address the issue.

Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI) and the JSCCIB, said at the monthly meeting on Wednesday that 23 industrial groups were currently feeling the effects of the US-China trade dispute.

They include key sectors such as steel, plastics, electrical appliances, food supplements, garments, glass and mirrors, and cosmetics. He warned that without appropriate measures, this number was projected to rise to 30 in 2025.
 

An investigation by Thansetthakij newspaper revealed that the JSCCIB and the Ministry of Commerce have discussed the impact on these 23 sectors, covering the effects on imports, production, and employment. The most heavily affected include:

• Electrical appliances and electronics: Impact from imports on the computer and component sector, including electrical and electronic appliances, with production impacts on computers, electronics, optical equipment, and household appliances.
• Food and beverage: Impact from imports on rice and starch products, vegetables and fruits, milk and dairy, coffee, tea and spices, sweets and chocolate, with production impacts on chilled and frozen seafood and cereal products.

Other affected sectors include machinery and metalworking, agricultural machinery, aluminium, metal casting, plastics, furniture and creative handicrafts, shipbuilding and repair, biotechnology, glass and mirrors, pulp and paper, cosmetics, food supplements, chemicals, granite and marble, ceramics, cement, jewellery, leather goods, textiles, and garments.
 

Kriengkrai highlighted the private sector’s concerns about the indirect impact of the trade war. He explained that as the world’s largest exporter, China has consistently maintained a trade surplus with the US.  

In 2023, increased US trade barriers led to a 20% reduction in Chinese exports to the US, from a value of over $500 billion. This, he argued, has resulted in a surge of Chinese goods into ASEAN markets, with Thailand bearing a significant portion of this influx.

He added that while the Ministry of Industry is focused on preventing the import of substandard goods, the issue requires a more integrated approach involving multiple agencies.