Chinese capital flees the trade war between Europe and the United States and enters the Thai market.

, director of the Trade Policy and Strategy Office of the Thai Ministry of Commerce, said that the authorities need to pay close attention to the trend of the Sino-US trade war and make a preliminary assessment of what changes the US tariff measures against China and China's response will bring to the supply chain and product costs, as well as how the transfer of trade and investment will affect Thailand's import and export industry.

affected by the Sino-US trade war, China is very likely to increase its investment in Thailand. Chinese enterprises tend to expand or transfer their production bases, make full use of their own production and sales advantages, and export their products to potential emerging markets with high growth such as Thailand and ASEAN.

preliminary assessment, compared with the first round of trade war in 2018, the latest trade war will not have a serious impact in the short term. The first round of the trade war led to a 2.6 percent contraction in Thai exports in 2019. This round of trade war is a "double-edged sword" for Thailand's economy and trade, which has both positive and negative effects, especially in the export of semiconductors, steel and aluminum, and rubber products.

data, in 2023, the U.S. semiconductor imports ranked eighth in the world, and most of the import source countries were located in ASEAN and East Asia. China was the fifth largest source of imports, with an import value of US $2.322 billion billion, accounting for 5.6 percent of the total U.S. semiconductor imports, down 29.6 percent from a year earlier. Thailand is the sixth largest source of imports, with imports worth $1.96 billion billion, accounting for 4.7 per cent of total US semiconductor imports, down 10.0 per cent year-on-year.

Between 2017 and 2023, the compound annual growth rate (CAGR) of total US imports from Thailand expanded to 13.6 per cent. At the same time, the average annual compound growth rate of total imports of the United States from China fell by 6.0, and the average annual compound growth rate of total imports from Malaysia fell by 3.9.

, the Sino-US trade war is not expected to have an impact on electric vehicles in Thailand in the short term, because many electric vehicle manufacturers aim to produce electric vehicles for sale in Thailand and its neighboring countries. In addition, the value of Thailand's exports to the United States is relatively small, mainly for internal combustion engine auto parts. Most of Thailand's auto export markets are in ASEAN and Oceania, especially Australia.

According to the New York Times, seven U.S. solar factories jointly established the U.S. Solar Manufacturers Alliance Trade Committee, and filed a petition with the U.S. Department of Commerce and the U.S. International Trade Commission on April 24, requesting anti-dumping and countervailing duties on photovoltaic products in Malaysia, Cambodia, Thailand and Vietnam to protect the U.S. domestic manufacturing industry.

The alliance said that Chinese photovoltaic companies have factories in Malaysia, Cambodia, Vietnam and Thailand, and provide solar panels to the US market at a price lower than their production costs, causing module prices to plummet by more than 50%, threatening the US photovoltaic manufacturing industry. The companies under investigation are mainly those with ties to China, which are suspected of trying to evade US penalties by shifting supply chains to the four countries.

initially expects the United States to impose tariffs of 126.1 percent on imports from Cambodia, 81.2 percent from Malaysia, 70.4 percent from Thailand and 271.5 percent from Vietnam.

Thai Chamber of Commerce, said that the Sino-US trade war will lead to changes in Chinese investment, focusing on finding new investment destinations to reduce the impact of the conflict. Not only Thailand, but other countries in the ASEAN region will be China's investment targets.

in general, Chinese companies must continue to maintain their production base because it does not only trade with the United States. Chinese investment and manufacturing products are characterized by economies of scale in mass production, which will affect sales prices, so Thailand must pay attention to this problem and adapt to the adjustment in time. via Thailand Lan Elephant Network