China's Zero-Dollar Trade Sparks Thailand's Economic Woes

[ericbj]

Tariffs are sometimes necessary, within reason and subject to negotiation, to protect a weaker nation against economic domination.

 

Trump has said that foreign manufacturers can avoid paying tariffs on their products by building factories in the U.S.

[However in view of the recent practice of seizing foreign assets (no longer limited to Treasuries) for political reasons, some countries may be discouraged from doing this; if they are not actually prevented from doing so]

 

It seems that Foreign Direct Investment is the method some foreign companies avoid paying Thai tariffs :

 

FDI applications for 2024 :

Singapore:    358B THB
China:        175B THB
Hong Kong:    82B THB
Taiwan        50B THB
Japan        49B THB

Note:  Most of the investment from Singapore originates from China and the U.S.  Figures refer to applications, of which about 75% are taken up.

 

One of the claims of "unfair" treatment by the Trump administration is that U.S. manufacturers have to pay sales or value-added-tax on their exported goods.  These are paid by domestic producers  so how can they disadvantage U.S. produced items ?

 

[trainman34014]

12 hours ago, renaissanc said:

Thailand still hasn't realised that China is a predator, not a friend.

Thailand is being run by HighSo Sino Thai Families; Government House is full of them !

 

[Luuk Chaai]

On 4/12/2025 at 12:07 AM, it is what it is said:

 

assume you're referring to americans, this whole mess is due to american citizens

Correction ....  this whole mess is due to CHINA

 

every nation should tariff China @ 125% .

[Jedi888]

So China manufacturers are scrambling to REROUTE all their junk to NEW dumping grounds. As that same crap now costs 2.5X in the US. US is the worlds biggest consumer at 39% of world. Imagine a hole being burned into chinas economy for the tune of 30-35% for a minute.

Right now in Th business are struggling due to Temu et al dumping cheap goods here. It will get amped up. Plus we see declines in restaurant outings, China tourists, tourists in general. Even Shanghai is struggling with consumers. Asia is now reentering 1997. Lots of consumers are dead or maimed from the convid1984 death jab so they aint traveling! 20Mil dead, probably 40-60 mil health related injuries. There are stats to go look it up.

[Woke to Sounds]

49 minutes ago, Jedi888 said:

Lots of consumers are dead or maimed from the convid1984 death jab so they aint traveling!

 What? You serious? Fauch said it was OK to get poked!

 

China gov't just wants its people to travel n spend their cash WITHIN China is all.

 

Surveillance also easier that way.

[JimHuaHin]

One day Thais will wake up and realise that China is involved in a slow process of colonisation and exploitation of Thailand, at times with the assistance of local elite Chinese-Thai businesses and criminal elements.

[Luuk Chaai]

On 4/13/2025 at 7:32 AM, JimHuaHin said:

One day Thais will wake up and realise that China is involved in a slow process of colonisation and exploitation of Thailand, 

https://f4.bcbits.com/img/a0430823050_16.jpg 

I think they have the date that will happen figured out !

 

[daveAustin]

On 4/12/2025 at 8:53 AM, mfd101 said:

Not sure I understand what a 'zero-dollar investment' is. ?

 

(I had understood for example that many vehicles on the road in Thailand - of many brands - are at least assembled - but not manufactured? - in Thailand.)

The locals get F all benefit from it. 

[mfd101]

4 minutes ago, daveAustin said:

The locals get F all benefit from it. 

The locals who assemble, distribute & sell the vehicles presumably get paid ...

 

As to the bigger picture, I guess we just have to get used to Chinese energy & technical & manufacturing capability that outdistances the rest of the world including most of The West. When Thailand pulls its collective finger out, maybe it too could enjoy the benefits of hard work + brain power.

[impulse]

19 minutes ago, mfd101 said:

The locals who assemble, distribute & sell the vehicles presumably get paid ...

 

I recall reading about a scandal where a company was importing fully assembled cars and all the Thais were doing was adding the hood ornament. 

 

I'm not sure if that was real, or an urban myth.  But that's a good example of a "zero dollar investment".