IIAT to sue Chinese grey capital over fake Thai innovations

On Tuesday, IIAT president Phanwachanan Kraimat stated that Chinese grey capital groups have deeply infiltrated Thai society, establishing companies to flood the market with fake and substandard products, thereby deceiving Thai consumers.

This has led to people receiving goods unfit for use, resulting in financial losses and deep personal disappointment, he said.

Phanwachanan expressed his gratitude to Thai citizens who exposed these fraudulent practices despite facing risks such as dismissal from their jobs. 

He called their actions a merit-worthy contribution to the country, helping to expose the moral corruption of these groups, who would do anything for profit regardless of right or wrong.

Phanwachanan reaffirmed his determination to pursue legal action against the counterfeiters under all relevant laws, declaring there would be no compromise.

He also urged all affected individuals to come forward for consultation in order to pursue a collective lawsuit. This, he added, will not only help uncover the truth but also safeguard Thai products and innovations.

“I am deeply dissatisfied with how Chinese grey capital has infiltrated various sectors in Thailand. I believe operational bases for these unlawful activities now exist on a global scale. But what pains me most is seeing fellow Thais collaborate with these foreign interests.”

Phanwachanan further claimed that award-winning Thai fire prevention innovations had been rejected in some markets due to confusion caused by copycat products. 

He explained that the grey capital groups had taken publicly available company registration numbers from the Department of Business Development’s website and used them to register counterfeit goods on major online platforms.

“These platforms have been used to sell unauthorised, substandard replicas of our products, without any consent from the original creators or companies,” he said, adding that the association had attempted to contact the relevant authorities and platforms but had received no response.

Phanwachanan also raised concerns over the growing number of Thai companies established through Chinese nominees. 

He explained that, last year alone, around 300 such companies were registered. Looking back over the past five years, there have been approximately 500 to 600 in total. All of them use the same tactic—having Thai nationals hold a nominal 51% share.

He urged the government to strengthen the fight against economic crimes in all dimensions, including the revision or drafting of new laws to prevent Thai nationals from acting as nominees for transnational criminal groups.

Finally, he called on the Commerce and Foreign Ministries to take concrete action to resolve this issue.