PM wants stricter curbs on cheap-product dumping
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PM wants stricter curbs on cheap-product dumping

Online sales curbs studied as concerns grow about imports, especially from China

(Photo: 123RF)
(Photo: 123RF)

Prime Minister Srettha Thavisin has asked government agencies to step up actions to stop suspicious imports, including tougher inspection of licences and registrations, payments and quality control.

Online sales of foreign goods, particularly cheap Chinese imports, have come under the heaviest scrutiny in recent months as local producers face increasing impact.

Mr Srettha told a cabinet meeting on Tuesday that he wants to see stronger anti-dumping measures for both offline and online transactions by the end of the month.

Last month the government extended value-added tax of 7% to all imported goods priced below 1,500 baht, which had previously been exempt. There has also been talk of higher customs duties.

The Ministry of Commerce plans to cap the quantity and value of goods imported via online channels each year, government spokesman Chai Wacharonke said on Tuesday. He did not elaborate.

Neither Mr Srettha nor Mr Chai referred to China specifically, but groups including the Federation of Thai Industries and the Thai Chamber of Commerce have said local producers are reeling from competition with Chinese goods.

“There is an influx of imported products online at an abnormally high level,” Mr Chai told reporters after the cabinet meeting. “This is severely hitting our local producers, especially SMEs. We are not complacent about this.”

While China has come under fire periodically through the years for shipping cheap goods since its emergence as a manufacturing powerhouse decades ago, its exports have come under closer scrutiny of late as countries grapple with widening trade imbalances and factories shutting down.

Regional problem

Indonesia, Malaysia and Vietnam have similarly increased their vigilance against Chinese imports in the past months, with measures such as reviewing anti-dumping policies, initiating investigations and reimposing tariffs. The crackdown covers goods including steel, textile, plastics, leather, rubber, wood, and — lately — even consumer products.

Thailand has been hit particularly hard, with more than 3,500 factories shuttered in the past three and a half years, according to a report by the local newspaper Thansettakij.

The recent entry of the Chinese online shopping platform Temu has raised concerns about its impact as well.

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

Still, the government will try to “strike a balance” between shielding local businesses and complying with international trade agreements, Mr Chai said.

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