Thailand to restrict online sales as concerns about dumping from China grow

Thailand plans to restrict online sales of foreign goods as Chinese imports come under increased scrutiny across the region, which is feeling the impact of a flood of cheap goods in the market that is hurting local manufacturers.

Prime Minister Srettha Thavisin on Tuesday urged government authorities to take enhanced measures to curb suspicious imports, including tighter controls on licenses and registrations, payments and quality control.

Thailand’s president plans to impose stricter anti-dumping measures on offline and online transactions by the end of the month, in addition to the value-added tax that has been levied on imported goods under 1,500 baht ($42.65) since July 5 this year.

The Commerce Ministry plans to limit the amount and value of goods imported online each year, government spokesman Chai Wacharonke said. Neither Srettha nor Chai referred to China, but groups such as Thai Industries and the Thai Chamber of Commerce said local producers are suffering from competition from Chinese goods.

“There is an unusually high influx of imported products on the internet,” government spokesman Chai Wacharonke told reporters after a cabinet meeting. “This is hitting our local producers, especially SMEs, hard. We are not complacent about this.”

While China has come under criticism for importing cheap goods over the years since it rose to become a manufacturing powerhouse decades ago, its exports have recently come under increased scrutiny as countries grapple with growing trade deficits and factory closures.

Indonesia, Malaysia and Vietnam have also increased their vigilance against Chinese imports in recent months, with measures such as reviewing anti-dumping policies, launching investigations and reinstating tariffs. The measures affect steel, textiles, plastics, leather, rubber, wood and – more recently – even consumer goods.

Thailand has been hit particularly hard: According to a report in the local newspaper Thansettakij, more than 3,500 factories have had to be closed there in the past three and a half years.

Online shopping platform Temu, owned by China’s PDD Holdings Inc., recently entered Thailand, raising concerns about its impact. Other popular e-retailers in Thailand include Alibaba Group Holding Ltd.’s Lazada and Sea Ltd.’s Shopee.

“We need to take measures to support our SMEs so that they can adapt and compete in the market both offline and online,” Srettha said in a briefing, referring to small and medium enterprises.

Nevertheless, the government will try to “find a balance” between protecting local businesses and complying with international trade agreements, Chai said.