Pictures courtesy of MGR

The Office of the Ombudsman has proposed seven measures to address the growing impact of Chinese capital on Thai businesses, citing rising production costs, environmental pollution and unfair competition. The proposals follow complaints that Chinese investors have disrupted local industries, driven up raw material prices and used nominee arrangements to bypass Thai law, causing hardship for small Thai operators and communities.

The issue emerged from proactive investigations by the Ombudsman into the use of foreign “nominees” to hold land, property, and businesses in Thailand. On 31 December 2025, Ombudsman President Songsak Saicheua said the problem had expanded beyond property into retail trade, fresh markets, community markets and local processing industries, directly affecting Thai small and medium-sized enterprises.

A recent case involved coconut shell charcoal kilns in Pak Tho district, Ratchaburi province, where Chinese capital reportedly bought coconut shell charcoal at 19–20 baht per kilogram, compared with about 9.50 baht paid by Thai factories. This sharp price rise increased costs for Thai operators, caused raw material shortages and raised the risk of factory closures.

Higher prices also encouraged villagers to accelerate charcoal burning, leading to dense smoke and air pollution that affected health and quality of life in surrounding communities. Provincial agencies found that in Yang Hak subdistrict, around 35 operators ran six to eight kilns each, with carbon monoxide levels exceeding standards at multiple points and smoke covering the area, especially in winter and early mornings.

Authorities confirmed that only nine coconut shell charcoal factories in the area were legally licensed. The Ministry of Commerce, through the Department of Business Development, is investigating 46,000 high-risk nominee businesses nationwide, including 58 in Ratchaburi, which are currently under review.

The Ombudsman’s seven measures include creating balance across production chains, domestic and export demand, community coexistence, and environmental protection. Other steps call for preventing illegal foreign business activities, systematic pollution control through provincial committees, local ordinances to regulate charcoal burning, tighter export screening by the Department of Foreign Trade and Customs, monitoring nominee practices and foreign land ownership and addressing cases involving Chinese state-owned enterprises through diplomatic and trade channels.

Separately, inspections at Sai Tai Centre market in Bangkok’s Taling Chan district found about 700 Cambodian nationals operating retail businesses using Thai nominees. Officials reported intimidation of Thai traders and unfair competition, prompting recommendations for stricter identity checks, bans on subleasing, direct payment verification and the creation of monitoring centres and national databases.

MGR online reported that the Ombudsman urged all agencies to coordinate action from upstream to downstream, covering economic, legal, environmental and export dimensions. The office will continue field inspections and push for a nationwide nominee law to close legal loopholes and ensure fair competition.

Key Takeaways

• The Ombudsman proposed seven measures on 31 December 2025 to counter foreign nominee practices and market distortion.

• Chinese capital was linked to higher coconut shell charcoal prices, pollution, and risks to Thai operators in Ratchaburi.

• Authorities are expanding inspections nationwide, with 46,000 nominee-risk businesses under review.

  

Adapted by ASEAN Now from MGRonline 2026-01-03

 

 

4 minutes ago, Georgealbert said:

The proposals follow complaints that Chinese investors have disrupted local industries, driven up raw material prices and used nominee arrangements to bypass Thai law, causing hardship for small Thai operators and communities.

What did Thais think the Chinese were going to do? This is how they operate. It's like this everywhere they gain a beachhead.

8 minutes ago, John Drake said:

What did Thais think the Chinese were going to do? This is how they operate. It's like this everywhere they gain a beachhead.

.. combined with the systemic corruption at all levels in Thailand and it's a recipe for disaster.

2 minutes ago, Des1 said:

.. combined with the systemic corruption at all levels in Thailand and it's a recipe for disaster.

Very much the necessary prime ingredient. Corruption gains access, and it's all downhill from there. There's no win-win with China. It's all about mercantile extraction from the targeted country/colony.

2 hours ago, Georgealbert said:

he issue emerged from proactive investigations by the Ombudsman

Wow, almost encouraging - "proactive". Will it actually go anywhere beyond the surface level though especially when you consider this opinion -

2 hours ago, Des1 said:

.. combined with the systemic corruption at all levels in Thailand and it's a recipe for disaster.

Unfortunately IMO the 'proactivity' is at least 4 years to late and I fear it is now too late to materially change the direction. It would be nice to be proven wrong but that would require a sea change in attitudes.

Just in case those of chinese descent or with close ties to China are already in power in Thailand...