China pledges to help Thailand clamp down on illicit businesses

China is supporting Thailand's efforts to crack down on Chinese-run illegal businesses in the Kingdom, but has warned that overstating the issue could affect Chinese investors’ confidence, Chinese Ambassador to Thailand Zhang Jianwei said.

Speaking to reporters on Monday, Zhang said he urges all Chinese companies operating in Thailand to abide strictly by Thai laws and be aware of local communities, especially concerning environmental issues.

He warned, however, that incautious approaches over the matter could pose a risk to Chinese investment in Thailand, adding “We should not overstate certain cases where businesses operate illegally because this might make Chinese entrepreneurs in Thailand feel that Thai society does not like them, which could negatively impact their business operations… The case of Chinese businesses violating the law is just one particular issue and this does not represent the overall picture of Chinese doing business in Thailand.”

According to the Department of Business Development, China topped the list of foreign countries in terms of the amount invested in Thailand, at around 35 billion baht, during the first six months of this year.

Crackdowns by Thai authorities have, however, recently found many businesses operating illegally in the Kingdom to be linked to Chinese nationals.

Tackling illegal foreign businesses in the country was on the agenda for Thai Prime Minister Anutin Charnvirakul’s first official trip to China between July 16th and 20th, during which he discussed the matter with Chinese President Xi Jinping.

Both sides also agreed to sign a Memorandum of Understanding (MoU) focusing on exchanging financial transaction information to prevent transnational crime.

Also, 14 more MoUs were signed during the trip.