The new government in Thailand is being urged to urgently address the perception that Chinese products and investments pose a threat to Thais before the issue escalates and negatively affects Thailand’s exports and tourism.

Sompop Manarungsan, president of the Panyapiwat Institute of Management and a specialist on the Chinese and US economies, said Thailand and China should cooperate to create a win-win trade model.

“Negative sentiment has been growing to the point where even a Chinese fried chicken brand that recently set up franchises in Thailand is seen as a threat. There are numerous Japanese and Korean restaurants in Thailand, while Chinese fried chicken shops are relatively few,” he said.

“If perceptions and attitudes towards Chinese investment and trade are not resolved quickly, it could lead to a trade confrontation with China, which would negatively impact Thailand’s export and tourism sectors.”

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Mr Sompop acknowledged Chinese investment and the influx of Chinese products into Thailand do have some negative impacts on local businesses, but he said there is another side to the coin.

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Chinese trade and investment have benefits and drawbacks, as most factories in Thailand use low-cost components or raw materials from China.

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China has not yet reduced its production capacity, causing a surplus of Chinese goods to flow into developing countries, said Mr Sompop.