Operators originating from China artificially suppressing coconut prices for Thai farmers have put the spotlight back on Thailand’s complicated relationship with Chinese entrepreneurs in recent weeks.
Conversation surrounding the frequently predatory tactics employed by these foreign entities usually revolve around matters such as encroachment on Thai operators and ‘economic imperialism’.
These are all reasonable concerns, especially since many of these cases involve so-called ‘grey money’ tied to explicitly criminal activities.
What is interesting however, is how these stories and their related discussion often focus mainly on the ‘foreigner’ aspect while quickly glancing over the fact that the external threats would be hampered without the involvement of local accomplices, what many would refer to as ‘nominees’.
In the most recent example, Ratchaburi police raided Chinese controlled coconut-processing and trade facilitators that had so completely integrated throughout the supply chain – controlling procurement through to export – they were able to control prices at coconut farms.
According to the Economic Crime Suppression Division, ‘Coconut procurement prices for Thai growers were kept unusually low – at two to five baht each – and the coconuts were processed for export to other countries, especially China, at 35 to 50 baht each.’ The sizable profits from these sales went to the investors abroad.
What was being dealt with by the raids was the fact that the ‘practice excluded Thai farmers from normal trade systems and caused coconut prices at plantations nationwide to plunge’.
The companies did technically involve Thai nationals, those who held 51% stakes in each to legitimise their operation in the kingdom.
With most headlines stemming from this story emphasising the actions from outside the country, the impression would be that the wrongdoing was exclusively foreign, maybe that even the Thais on the side of the Chinese masters were somehow also victims of the plot.
That may be the case for some, but with the increasing incidence of these types of schemes and the growing prevalence of the Thai nominee concept, a significant number are sure to have been willing accessories.
In a more disturbing example, charges were sought against three Thai proxies who had allegedly lent their identities to allow for the setup of China Railway No.10 Engineering Co, half of the ITD-CREC consortium building the State Audit Office (SAO) that claimed close to 100 lives during its collapse in 2025.
Prajuab Sirikhet, Sophon Meechai and Manat Sri-Anan were named by the Department of Special Investigation as possible violators of the Foreign Business Act in connection with irregularities in the construction of the ill-fated SAO headquarters.
Media investigations into Sophon found that he was little more than a longtime employee of a tyre manufacturer, an unlikely backer for a major state project.
Despite the nationwide interest in the case and the many implications of criminal activity, little seems to have happened as far as the three Thais are concerned.
News stories to do with them faded away after the middle of last year and much of the coverage featuring their names is concerned on whether or not they could lead back to a culpable party in China.
That seems to be the general attitude here, that any Thai people party to cross-border conspiracies are little more than an insignificant component. If they are not written off as duped into participation, they are not treated as collaborators that should be equally at fault.
This is illustrated by official approaches to the practice. Only at the start of this year was it decided stricter measures were needed to help uncover those selling out their country.
Thai nationals looking to take on more than 40% of a business with a foreign partner are now required to produce three months of personal bank statements to prove they have their own investment funds. If more than five companies are registered at a single address, they are automatically flagged for a physical inspection.
These precautions come years after the problem grew into a nationwide epidemic that has surely cost Thailand billions and even led to loss of life.
Like dealing drugs or mule accounts, acting on behalf of those with illegal intent should be no less incriminating. Until social as well as legal reprisals match the actual damage done by Thai nominees opening the doors to attacking hordes, the nation will remain completely vulnerable.