Illegal Chinese factories destroy Thai steel market with unfair prices

The Thai steel industry is facing unfair competition from Chinese capital that has set up factories without legal standards. Many factories smuggle scrap metal and chemicals that are harmful to the environment by registering their companies through Thai nominees. Once the production is complete, the products are exported to China and other markets at prices lower than the cost of Thai producers. As a result, many Thai steel factories have to close down.

In addition, these illegal factories often use illegal labor and do not follow occupational safety standards, causing both social and labor problems in the areas where these factories are located.

Lampang’s ‘Chicken Bowls’ are being slammed by Chinese capital for copycats and smuggling of toxic substances

The chicken-pattern pottery, which is a symbol of Lampang and is famous internationally, is being heavily intervened by Chinese capital. Illegal factories have been set up using low-quality raw materials and substandard production processes to produce cheap imitation chicken bowls. In addition to damaging the reputation of local products, these factories are also smuggling ceramic coatings that are high in heavy metals, which can be harmful to consumers’ health.

Locals in the area complain that these illegal factories are causing local ceramic businesses with high standards to face problems with declining sales. Because they cannot compete with cheap products that are produced using low-quality raw materials and much lower labor costs.

Loopholes in Thai law allow foreign capital to violate the rights of Thai entrepreneurs.

One of the major problems that allow Chinese capital to conduct illegal business in Thailand is the use of loopholes in the law, especially in terms of controlling industrial factories, checking the source of investment, and enforcing labor laws.

Using Thais as nominees to register companies makes it difficult for officials to verify who the real owners are.

Smuggling of chemicals and prohibited raw materials through unauthorized routes.

Setting up factories without licenses allows for tax and environmental law avoidance.

Although the Thai government has tightened inspection measures, there are still many illegal factories scattered in many areas, especially in the North and East of the country.

Voices from Thai entrepreneurs: “If the government does not take action, we will not be able to survive.”

Thai entrepreneurs affected by this problem are calling for the government to urgently crack down on these illegal factories and propose measures to protect domestic industries, such as:
✅ Controlling the import of toxic substances and substandard raw materials.
✅ Checking and cracking down on the use of illegal labor.
✅ Strictly registering companies that use Thais as nominees.
✅ Promoting and protecting local industries to be competitive.

If there is no systematic solution, many sectors of Thai industry may face a decline due to unfair competition. and has a long-term impact on the Thai economy