China’s PPI still shows signs of contraction, broadening the influx of low-cost Chinese goods into ASEAN, including Thailand (Business Brief No.4172 Full Ed.)

        The continued downward trend in China’s PPI may broaden the influx of low-cost Chinese goods into ASEAN, including Thailand. Looking ahead, Chinese manufacturers are likely to reduce product prices due to overcapacity exacerbated by the impacts of a renewed trade war from August 1, 2025, onward, as tariff rates in various countries trend upward. Industrial inventory levels in some Chinese sectors, such as electrical machinery and equipment, as well as pharmaceutical products, remain high, which will continue to exert downward pressure on price levels in China’s export markets, particularly ASEAN countries like Vietnam and Thailand.