4 ministries unite to combat influx of low-quality Chinese products

WEDNESDAY, AUGUST 07, 2024

The initiative aims to protect local businesses by enhancing screening measures, enforcing standards and amending relevant laws

Four ministries, namely Commerce, Industry, Public Health and Digital Economy and Society, will work together to tackle the influx of ultra-cheap and often poor quality products from China.

The aim is to protect local businesses and consumers, the government said. 

After attending the Cabinet meeting on Tuesday, Prime Minister Srettha Thavisin said he had tasked the Commerce Ministry with becoming a central agency in handling the problem of Chinese products flooding Thai markets and severely affecting the operations of local small and medium enterprises (SMEs). The ministry is expected to report the progress of its operations to the Cabinet periodically, he added. 

Commerce Minister Phumtham Wechayachai, who doubles as deputy prime minister, said he will soon hold a meeting with the executives of the Industry, Public Health, and Digital Economy and Society ministries to discuss measures for this problem. 

He said the measures would focus on ensuring that all imported products meet relevant industrial and health standards by boosting screening efforts at customs checkpoints as well as conducting random tests at markets.

Meanwhile, relevant agencies will also look into the possibility of amending the laws and regulations to prevent substandard products from entering the Thai market. This amendment will be done in a manner that does not violate the World Trade Organisation’s agreements, he added.

Digital Economy and Society (DES) Minister Prasert Chantararuangthong said his ministry has been closely monitoring the new Chinese e-commerce platform Temu since it registered to conduct business in Thailand last month.

Temu’s entry into the Thai e-commerce market has sparked concerns among Thai entrepreneurs and consumers about the unchecked influx of ultra-cheap and often substandard goods from China, which can be ordered online directly without going through retailers.

Prasert said the DES Ministry will continue enforcing rules on e-commerce platforms related to consumer protection, such as warranty claims, product returns and false advertising.

Thawatchai Setthachinda, vice-president of the Thai Chamber of Commerce, has urged the government to make it mandatory for foreign e-commerce operators to establish an office in Thailand, so the authorities can check for legal compliance and taxation.

“The government should take swift action to prevent foreign e-commerce giants from hurting Thai entrepreneurs, especially cheap products from China that can completely replace locally made goods,” he said.