Start shipping from Thailand to China with this guide

For Thai sellers, expanding operations into the Chinese market represents a significant business opportunity. According to CEIC Data, the total value of exports from Thailand to China was recorded at a staggering US$3.711 billion in April 2023, making China one of Thailand’s largest trading partners right now. The robust Chinese economy, rising purchasing power of Chinese consumers, and a growing preference for Thai products are all key factors currently driving this dynamic and lucrative market landscape for sellers in Thailand.

The significance of China as a market for Thai sellers is amplified by favourable trade agreements like the ASEAN-China Free Trade Area (ACFTA) and the more recent so-called 'mini' Free Trade Agreement. The ACFTA aims to eliminate import tariffs on 90% of traded goods between signed parties, making the process of exporting goods from Thailand to China more attractive and economical. This, combined with China’s ongoing commitment to open its markets, has created a compelling opportunity for Thai sellers to expand their operations.

'Mini' FTAs, bilateral agreements between Thailand and selected cities or provinces in China, further strengthen this potential. Following the signing of a mini FTA between Thailand and China’s Hainan province in August 2022, bilateral trade between Thailand and Hainan rose by over 90% to reach US$520 million – suggesting that such deals can help Thai sellers reach potential buyers more effectively.

Read on to understand crucial aspects of the importation landscape between Thailand to China and how to navigate the complex customs landscape that lies ahead.

The China market: A golden opportunity for Thai sellers

China, with its impressive population and growing middle class, offers an incredibly diverse market for Thai sellers seeking to expand their customer base. The sheer size of the market opens up possibilities for a wide range of goods, from fresh produce to high-quality manufactured goods.

Moreover, e-commerce in China is experiencing remarkable growth. This opens avenues for Thai sellers looking to expand their markets without the astronomically costly overheads of setting up a brick-and-mortar storefront in a new country. In fact, a significant portion of China’s population regularly shops online, with an estimated 93.38% e-commerce user penetration rate, according to Statista. This is largely due to the country's high internet penetration rate and increasing number of smartphone users transforming China into a hotbed for online retail. 

This growth in online consumption illustrates China’s readiness to embrace digital shopping trends, making China an attractive market for online retailers worldwide.

Understanding the Chinese buyer

Chinese consumers are rapidly becoming one of the most powerful purchasing forces in the world. Known for their discerning taste, attention to quality, and appreciation for uniqueness, they play a pivotal role in shaping the dynamics of cross-border commerce. With Chinese consumers often associating foreign products with prestige and higher quality, Thai sellers have a unique opportunity to tap into this market segment and boost their online sales.

According to data from Trading Economics, in 2022, China’s top imports from Thailand included electrical and electronic equipment, machinery, edible fruits, rubbers, and plastics. These commodities indicate the vast range of products that Chinese consumers are interested in, covering everything from everyday essentials to high-tech equipment.

However, it's important to recognise the growing trends that hint at new opportunities for Thai businesses that want to begin exporting to China. Particularly, durian and young coconuts from Thailand have captured the Chinese market's imagination. Their appeal lies in the taste for exotic fruits that has surged among Chinese consumers, symbolising their openness to new culinary experiences. This preference provides an enticing opportunity for Thai fruit exporters, who can cater to the growing Chinese demand for fresh, exotic produce.

Beyond fruits, other products have been steadily gaining traction. For example, milk and meat products, such as chicken feet, have seen a significant rise in popularity, underscoring the emerging trend in China’s increasing demand for imported food items. This trend is driven by a rapidly growing middle class in China that is willing to pay a premium for high-quality, imported goods.

Read More: Key things to know when shipping foodinternationally

Wood imports from Thailand are also gaining a strong market in China, fuelled by the country's expanding infrastructure projects and the desire for high-quality timber. This underlines another potential area of growth for Thai businesses within the forestry sector.

These import trends not only highlight the vast product range that Chinese consumers are interested in, but also shed light on their evolving tastes and preferences. It suggests a consumer profile that values diversity and quality and is open to trying new things. This dynamism, along with a deepening appreciation for Thai goods, presents Thai sellers with a golden opportunity to meet a broad spectrum of consumer needs and tap into China’s flourishing e-commerce market.

Shipping to China: Things Thai sellers need to know