Thread: Thailand : Thai exports to China slowing

Thai exports to China slowing in wake of US financial crisis

BANGKOK, Oct 3 (TNA) – Thailand's exports to China have begun to slow as its demand for imported materials to process for export has declined in the wake of the financial crisis in the United States, according to Kasikorn Research Center.

The leading think tank reported that Thai exports to China in August grew only 1.4 per cent with a value of US$1.44 billion, the lowest since early this year.

Key export items used by China for industrial production -- including chemical products, electrical circuit boards, and refined oil -- dropped in export value by 40, 8.5, and 13.1 per cent respectively in August.

The shipment of other key export items to China -- including computers and parts, plastic pellets, and woods and wooden products -- had grown at a slower pace during the month.

The significant decline in exports to China in August resulted in only a 24.7 per cent growth of Thai exports to China for tin the first 8 months of this year compared with 29 per cent in the first 7 months of the year.

KRC predicted that Thailand's exports would not be rosy during the rest of the year since the economies of its major destinations, including Europe and Japan, are likely to slow in the wake of the US financial crisis.

The crisis would also impact on Thailand's exports to China in the remainder of this year since China, as one of the world's giant export producers, might be forced to reduce imports of raw materials for production if the demand in the global market decline.

However, KRC said, should the US government be able to prevent the financial crisis from spilling over and affecting the real sector, impacts of the problem on the economies of many countries, including China will be limited.

But it will help ease pressure on China's export sector, which could finally reduce impacts on Thailand's exports to the country.

At present, China has become Thailand's third largest export destination with its portion of exports having increased to 9.5 per cent at present from 4.4 per cent in 2001. (TNA)

enews.mcot.net


they said this wouldn't happen , what 'appened ma ???


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China, the major importer of Thai rubber, has also slowed buying rubber from this country, said Mr. Prapas. He said Thai rubber exporters should speed negotiations with Chinese importers in order to help the rubber industry survive. (TNA)

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