The Transformation of Chinese Investment in Thailand: From Manufacturing Bases to Digital Platforms

Abstract

             Over the past decade, Thailand has become a key destination for Chinese outbound investment, especially as China's investment strategy shifts from traditional manufacturing toward digital platforms and data-based economic models. This new wave of Chinese capital demonstrates structural and strategic differences from conventional industrial investment, exerting influence through platformization, digital infrastructure, and behavioral data control. Despite the growing presence of Chinese platforms in Thailand—including e-commerce, fintech, logistics, and cloud services—academic studies in Thailand have rarely explored this transformation in depth. It is therefore necessary to examine how this new capital structure impacts Thai economic sovereignty and governance.
               This article aims to analyze the characteristics of the “new wave of Chinese capital” in Thailand by investigating the transformation from factory-based industrial investment to platform-based digital engagement. The study examines its implications across three dimensions: economic, socio-cultural, and digital-security. Employing documentary research methodology, this study utilizes secondary data from government reports, academic journals (Thai and international), international organizations, and case studies from Chinese firms operating in Thailand between 2019 and 2024.
The findings reveal that the new Chinese capital embeds itself in the Thai economy through strategic control of value chains—via acquisitions, establishment of data centers, and use of content ecosystems and influencers to shape consumer behavior. As a result, many Thai businesses are marginalized, becoming dependent vendors within closed platforms. The study also identifies significant risks involving user data control, algorithmic influence, and potential threats to national digital sovereignty if left unregulated.
                The article presents four policy recommendations: (1) strengthen legal and regulatory mechanisms for foreign digital platforms, particularly around data sovereignty and PDPA enforcement; (2) support the development of competitive domestic platforms; (3) enhance digital skills and capacities of Thai entrepreneurs and workers; and (4) foster international cooperation to secure Thailand’s economic and technological sovereignty. The article contributes to a clearer understanding of how Chinese platform-based capital operates in Thailand and offers a framework for policymakers, researchers, and the private sector to respond strategically to this evolving investment trend.