Bangkok (VNA) ဣ– Imports from China into Thailand have risen sharply, prompting the Ministry of Commerce of the Southeast Asian nation to closely monitor high-risk sectors such as automobiles and consumer goods in a bid to curb trade diversion.

The Trade Policy and Strategy Office (TPSO), under the Thai Ministry of Commerce, has reported a significant increase in Chinese exports to Thailand, following a study on trade diversion. The study revealed that Chinese goods are at the highest risk of flooding the Thai market, with 1,149 items imported from China, including 24 high-risk items and 166 items under surveillance, mainly in the automotive and consumer goods sectors. The study, titled “Analysis of Trade Diversion: The Case of Chinese Goods Flooding Thailand After the US Imposed a 19% Reciprocal Tariff”, follows the US’s new tariff rates, announced on July 31, 2025, with Thailand’s 19% tariff. Natiya Suchinda, Deputy Director of the TPSO, stated that China poses the highest risk of trade diversion into Thailand. She recommended both short-term and long-term policy responses to address this issue. While the increased influx of Chinese goods could provide more choices for consumers and stimulate competition, excessive trade diversion could harm Thailand’s domestic production, especially for SMEs unable to compete. This could lead to reduced production capacity, job losses, and a trade deficit, ultimately impacting the broader economy. In response, the TPSO has conducted a comprehensive study to assess the impact and evaluate risks, preparing proactive measures for both the government and Thai businesses to mitigate negative consequences./.