FTI urges swift formation of govt to cope with flood of Chinese imports

After meeting with representatives from 45 industries last week, FTI chairman Kriangkrai Tiannukul told reporters on Wednesday that 20 industries are being damaged by an influx of Chinese products, up from five to six in the past.

The biggest problem is in iron-related industries, he said, adding that others include pharmaceuticals, aluminium, petrochemicals, plastic, and ceramics.

“As overseas markets contract following global economic stagnation, Chinese manufacturers have excessive stocks of finished products and need to unload them to nearby countries, including Thailand,” Kriangkrai said.

“These Chinese products are already cheaper than their locally made counterparts, and now they are pouring into Thai markets in different varieties to attract customers in all segments, including those that used to be dominated by Thai small and medium enterprises,” he added.

The FTI chairman said this issue is creating a ripple effect in Thailand’s manufacturing sector, which is already suffering from slumping exports.

Some manufacturers are reducing production until export markets rebound, and intensifying competition from low-cost Chinese products could push them to downsize even more.

“The new government’s top priority is to appoint an experienced and visionary economic team to head important ministries, especially finance, so that economic stimulus measures can be implemented,” Kriangkrai said.

Measures that would help Thai manufacturers include free trade agreements with European countries and using stimulus measures to increase domestic spending, he added.