E-commerce operators urgently seek steps to halt flood of substandard products

Thai e-commerce operators have called for urgent government measures to prepare for a flood of substandard Chinese products and grey capital entering the local market following Donald Trump’s victory in the US presidential election, seeking to avoid stricter trade policies.
The operators also believe the US-China trade war could enhance Thailand’s position as a strategic e-commerce hub in the region, drawing more investment and attracting international brands seeking alternative supply routes.
Follow the Trump victory, Pawoot Pongvitayapanu, honorary president of the Thai e-Commerce Association, said a greater volume of Chinese products would flood into Thailand as exporters from the mainland seek alternative markets to the US.
He said the Thai government must intensify efforts to curb the illegal entry of products across borders. It should be more stringent in checking the standard of imports in order to promote quality products and ensure fair competition for local small and medium-sized enterprises (SMEs).
Mr Pawoot said policymakers must strictly examine Chinese companies that use nominees to conduct illegal business in Thailand.
He said a parliamentary economic committee has launched a “grey capital detective” platform to address complaints about foreign businesses that may be violating Thai laws.
The committee allows the public to monitor and identify foreign businesses engaging in illegal activities, said Mr Pawoot.
Following the soft launch two weeks ago, the platform has received 200 reports. The platform plans to share the information with the Thai Industrial Standards Institute so it can investigate substandard products.
He said he expects greater Chinese investment in Thailand, as had occured earlier through investments in electric vehicle (EV) manufacturing plants.
Paul Srivorakul, chief executive of aCommerce, a regional e-commerce enabler, said the possibility that Trump will raise tariffs to 60% on Chinese goods may drive exporters to shift their focus towards Southeast Asia, potentially flooding Thailand with cheap products.
Mr Paul said this shift could necessitate Thailand to increase tariffs on Chinese imports, impacting e-commerce marketplaces that derive 30-40% of revenue from cross-border sales.
The new tariffs and regulations on Chinese goods could ultimately benefit Thailand’s economy and support local manufacturers.
“However, China is not the only potential target. Trump’s tariff strategy will extend beyond specific regions to individual countries, which means Thailand could also be affected.”
In 2023, Thailand had a trade surplus of US$29.4 billion with the US, which is Thailand’s second-largest trading partner after China.
Thailand’s exports to the US in 2023 were worth $48.9 billion, a 2.8% increase year on year, while imports stood at $19.5 billion, up 9.9% year on year.
The US tariffs will create a shift in global supply chains, prompting more companies to relocate operations to Southeast Asia to avoid tariffs and access the region’s growing digital consumer base.
This could enhance Thailand’s role as a strategic e-commerce hub in the region, attracting more international brands seeking alternative supply routes and driving up demand for local logistics, warehousing, and digital platforms, said Mr Paul.
A worst case scenario could also be that the US could increase tariffs on Thailand, knowing that many Chinese manufacturers will relocate here to avoid US-China tariffs, he said.
Thanawat Malabuppha, chief executive of Priceza, said after Trump’s win, China will move to invest in other markets, including Thailand.
More Chinese products will flood into Thailand, not just products exported from China, but also those from new Chinese factories established in Thailand in competition with Thai products.
Mr Thanawat said the new factories would benefit Thailand in the form of foreign investment. He urged Thai manufacturers to build stronger brands and expand more sales channels.