Thailand poised to profit amid US-China trade war
Thailand might be about to cash in on the US-China trade war. According to the Office of Industrial Economics (OIE), the ongoing clash between Washington and Beijing could see a major boost in Thai exports as American buyers look to replace Chinese shipments that are in jeopardy.
OIE Director-General Warawan Chitaroon stated that Thailand is a key manufacturing nation in ASEAN.
“Thailand exports goods to many countries. The trade war is providing a new opportunity to Thai manufacturers and exporters.”
Warawan suggested that local companies should conduct comprehensive studies on product development and business strategies to replace Chinese exporters for certain products in the US market.
Thai manufacturers are encouraged to improve their manufacturing processes to ensure they are not carbon-intensive, aligning with global campaigns against climate change, noted Warawan.
Warawan’s office is collaborating with both state and business sectors to assist Thai companies in enhancing and developing products for export to the US.
Thailand also aims to attract foreign investments in industries related to electric vehicles (EVs), lithium-ion batteries, solar panels, and building materials, Warawan said.
“Growing demand for solar panels, EVs, and lithium-ion batteries will drive investment in the manufacturing of these products in the country.”
Earlier this year, President Biden’s administration increased tariffs on certain Chinese products, citing unfair trade practices by Beijing. EV tariffs were raised to 100%, solar cells and semiconductors to 50%, and certain steel and aluminium imports from China to 25%, more than triple the current levels, according to media reports.
China has reportedly vowed to take measures to protect its interests in response to these tariffs.
Warawan mentioned that the Ministry of Industry is currently studying the impact of Chinese investments in Thailand due to the trade war, as some buyers may perceive products exported from Thailand as Chinese-made, reported Bangkok Post.
“The government is concerned about this issue, so the Office of Industrial Economics is looking into it.”
