Shandong Province is a potential market for Thai natural rubber in China, with imports from Thailand projected to increase by 4% to USD960 million in 2026.

        China is the world's largest consumer of natural rubber, accounting for more than 46% of global consumption. However, due to insufficient domestic production, China has also become the world's largest importer of natural rubber, accounting for over 26% of total global imports. China's main rubber-growing areas are in Yunnan, Hainan, and Guangxi Zhuang Autonomous Region, accounting for over 90% of the country's total planted area. These regions are supported by government measures to improve productivity through modern agricultural technology and the research and development of high-yielding rubber varieties. The demand for natural rubber is driven primarily by key domestic industries such as automotive tire manufacturing and auto parts production, including tire rims, rubber hoses, engine mounts, door/window rubber seals, seals, etc. In addition, natural rubber is further processed into a wide range of products such as rubber gloves, footwear, toys, and engineering equipment. Most imports are in the form of block rubber and ribbed smoked sheets. China imports the largest share of its natural rubber from Thailand, accounting for 38% of its total imports, followed by Côte d'Ivoire (15%), Vietnam (11%), and Myanmar (10%).
        The three main provinces in China that import over USD3.868 billion worth of rubber, representing 68% of the total rubber import value, are Shandong (40%), Yunnan (18%), and Zhejiang (10%). KResearch estimates the proportion of China's rubber import value from Thailand and its competitors in these key provinces, based on an assessment of three main types of rubber-block rubber, sheet rubber, and latex concentrate-as follows:

► Shandong Province is a potential export market for Thailand in all major types of rubber, including block rubber, sheet rubber, and latex concentrate. The recognized quality standards of Thai rubber contribute to its strong popularity, which is reflected in China's higher import share from Thailand as compared to key competitors such as Côte d'Ivoire, Myanmar, and Vietnam. Therefore, in 2026, Shandong Province is expected to increase its imports of natural rubber from Thailand by 4%, reaching USD960 million.

► In Yunnan Province, Thailand faces difficulty competing, particularly in sheet rubber, where Myanmar dominates the market with a share as high as 96%, while Thailand holds only 1%. In addition, Thailand has not yet been able to penetrate the market for block rubber and latex concentrate in Yunnan. A key reason is that competitors such as Myanmar, Lao PDR, and Vietnam share direct borders with Yunnan and are geographically closer than Thailand, which make transportation more convenient and allow them to achieve lower costs than imports from Thailand.

► In Zhejiang Province, although Thailand competes well in latex concentrate and holds more than a 59% market share, competition from Vietnam must be closely monitored, as Vietnam offers significantly lower prices and may capture Thailand's market share in the future. Meanwhile, in block rubber, Thailand still lags Côte d'Ivoire, and in sheet rubber, Thailand remains behind Vietnam.

        ​Regarding the role of Shandong Province as a key export market that Thailand must maintain, this is because Shandong serves as China's largest base for natural rubber imports and rubber product manufacturing, particularly in the tire and processed rubber industries. Qingdao acts as a logistics and import port. In addition, Shandong is home to major tire manufacturers ranked among the world's top 20. It is also a major trading and warehousing hub, including the Qingdao International Rubber Exchange Market (QinRex) in Qingdao and a natural rubber warehouse of the Shanghai Futures Exchange.

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