Many interviewees stated that despite the high-profile crackdown on Chinese fraud groups by Thai police, the overall status of Chinese capital in Thailand has not been damaged. On the contrary, under the background of manufacturing restructuring in Southeast Asia, many "white industries" from China—that is, legitimate manufacturing and service enterprises—are actively welcomed by the Thai government. However, Chinese individuals from areas like Northern Myanmar, the Golden Triangle, and the Philippines, known for "grey industries," are targeted by Thai police for suspected illegal gambling, telecom fraud, kidnapping, and money laundering activities.
The difference in social perception between "white industries" and "grey industries" in Thailand has also gradually become apparent through Chinese social media platforms. On platforms like Xiaohongshu and Douyin, some users share their experiences of investing in factories, buying real estate, and enrolling their children in international schools in Thailand, and even summarize tips on "how to legally reside in Thailand long-term" and "how to obtain permanent residency through investment."
On Chinese Facebook communities, Telegram groups, and anti-fraud media, Chinese individuals involved in "grey industries" are frequently described as "outrageous," "damaging the reputation of Chinese people," and "a cancer affecting normal immigrants," often linked with Chinese official policies on drug enforcement, fraud prevention, and fugitive repatriation.
Insiders point out that this "white-grey diversion" is also inseparable from the Thai government's recent adjustments to its investment attraction strategy towards China. On one hand, Thailand actively attracts Chinese industries such as new energy, electronics, and garment manufacturing to settle in the "Eastern Economic Corridor," facilitating the residency of the white industry group with measures like visa on arrival, long-term visas, and visa exemptions. On the other hand, cooperation between Thai intelligence, police, and Chinese security agencies is increasingly close, with ongoing enhancements in the scrutiny of the backgrounds, finances, and social networks of illegal Chinese individuals.
In recent years, Thai police have increasingly and systematically cracked down on Chinese "grey industries." Besides closing down dens and deporting suspects, they also cooperate with Chinese authorities to investigate multiple cross-border money laundering and telecom fraud groups. For example, in the "Lin's financier case" that erupted in 2022, Thai police froze about 5 billion Thai baht (approximately 140 million USD) in related assets, involving several shell companies registered in Thailand; in 2023, a joint Chinese-Thai operation dismantled a foreign scam call center set up in Chiang Mai, with most suspects entering on tourist visas but staying illegally for long periods.
A Thai security advisor close to the law enforcement system stated that the current attitude of Thai authorities towards "grey industries" is "to regulate without indulgence." In other words, as long as they do not disrupt Thai social order or cause diplomatic risks, some low-level grey industries were previously overlooked; however, with the continuous elevation of law enforcement cooperation between China and Thailand, and the heightened vigilance of Southeast Asian countries against "gambling, fraud, laundering, and kidnapping," the situation for Chinese individuals involved in "grey industries" is increasingly difficult. He added, "Now, it's crucial where you come from and what you do. If you come from Northern Myanmar or the Philippines, Thai police will pay close attention; if you are an investor or a legal immigrant, you're likely fine."
China is also continuously pressuring Thailand to intensify the scrutiny and deportation of Chinese individuals involved in "grey industries." In recent years, the Chinese Embassy and Consulates in Thailand have repeatedly issued warnings to Chinese citizens not to engage in online gambling, telecom fraud, money laundering, and other illegal activities, clearly stating cooperation with Thai police to severely punish related illegal acts. Chinese law enforcement agencies have also sent multiple joint task forces to Thailand to assist in investigating and verifying the identities of suspects, even coordinating chartered flights to collectively deport a large number of arrested individuals. At the beginning of 2024, a temporary flight from Bangkok to Hunan carried nearly a hundred suspects involved in telecom fraud and cross-border gambling, becoming a focus of external attention.
Within the Chinese capital circle in Thailand, this external environmental change has also led to significant differentiation. A Chinese business owner operating a real estate project in Thailand revealed that in recent years, Thai officials have become more cautious in dealing with front-line institutions that interact with Chinese capital, especially in industries with intensive capital flows, such as gambling intermediaries, internet technology companies, and logistics and financial services. "It's becoming increasingly difficult to open bank accounts and visa reviews have also tightened. Some paths that were previously cleared through connections are now blocked."
Meanwhile, some Chinese individuals previously active on the fringes of "grey industries" are choosing to "whiten" themselves, attempting to transform or retreat. "Those who were previously involved in gambling and currency operations are now starting to engage in cross-border e-commerce, live-streaming sales, and even opening restaurants, selling tea, or operating tourism companies," a person close to the Chinese capital circle said. "Previously, they flaunted their wealth and gathered for gambling; now, they operate discreetly and only serve old customers." Many have moved away from gambling-concentrated border areas and chosen to settle in major cities like Bangkok and Chiang Mai to avoid detection. Some also take advantage of Thailand's relatively lenient immigration policies to apply for long-term residency through real estate purchases and children's education, aiming to evade potential deportation risks.
However, the intelligence exchange between Thai authorities and Chinese law enforcement agencies is strengthening. A person close to China-Thailand law enforcement cooperation revealed that the Chinese Ministry of Public Security has provided Thai authorities with a "priority monitoring list" of hundreds of Chinese nationals suspected of money laundering, fraud, and gambling. Although some on the list appear to be engaged in legal industries in Thailand, their funding sources are dubious and their social circles complex, making them key targets for investigation. "Thai authorities now not only check for criminal records but also examine your account transactions, social records, and even which community you live in and who you associate with," the person said. "It used to be easy to 'whiten' oneself, but now it's not so simple to 'bleach' anymore."
Moreover, Thailand's crackdown on Chinese "grey industries" is also affecting local society. Some Thai intermediaries, lawyers, translators, real estate agents, and police officers who provide services to "grey industries" are facing stricter regulation and scrutiny. "Previously, money could solve everything, but now many 'connections' dare not be misused," a former employee of the Thai Immigration Bureau privately stated. The Thai government is cleaning up "insiders," and several cases of assisting illegal Chinese individuals in obtaining visas and identities have been investigated, including some who were formerly employed in the immigration or police systems.
At the same time, Thai media has also intensified its reporting on the "grey industry" issue, and public tolerance for crimes committed by illegal Chinese individuals has noticeably decreased. Online, "Chinese scam groups," "Chinese black money," and "Chinese gangs" have become hot topics among Thai netizens, even leading to xenophobic sentiments against Chinese immigrants. Although the Thai government repeatedly emphasizes "welcoming legal investors" and "cracking down on all criminals," the fact is that "Chinese people" in this context have already been divided into two groups: "white industries" are welcomed, while "grey industries" are targeted.
In this context, some Chinese "grey industry" capitals are beginning to shift to neighboring countries or further to Africa and the Middle East. Regulatory measures are tightening in places like the Philippines, Myanmar, and Laos, while Cambodia, under a series of international pressures, has also intensified its rectification efforts. In contrast, some African countries, due to their underdeveloped legal systems and lax regulation, are gradually becoming new footholds for "grey industry" capitals. A Chinese individual long engaged in overseas business stated, "If you want to engage in these grey projects now, you must change locations. Thailand is no longer an ideal breeding ground."
However, some industry insiders point out that this geographical "migration" is only a temporary buffer. "No matter where you go, as long as you engage in illegal businesses, you will eventually face rectification. Countries like Thailand, which are gradually establishing a dual system of 'welcoming white industries, cracking down on grey industries,' will become increasingly common," the person analyzed. In the future, if China's "grey industry" capital does not undergo a thorough transformation, it will either face closure or continue to survive in the cracks of global policies.
