When a skyscraper built by a Chinese company crumbles amid a 7.7 magnitude earthquake, it ignites a diplomatic firestorm and a deep dive into construction malpractice.
At a Glance
- Investigation into substandard materials by Thai-Chinese company, Xin Ke Yuan Steel.
- 47 deaths in Thailand; more than 3,700 fatalities in Myanmar due to earthquake effects.
- Arrest of a Chinese executive for nominee ownership in violation of Thai law.
- Diplomatic tensions rise as Chinese intervention faces resistance.
Scrutiny Over Chinese Construction
The devastating earthquake that recently shook parts of Myanmar and Thailand left behind a trail of destruction, including the collapse of a 33-story skyscraper in Bangkok. This tragedy resulted in 47 deaths with countless others wounded or still missing. While natural forces caused the initial disaster, it’s the questionable construction practices of China Railway Number 10 Engineering Group that have come under severe scrutiny. The allegations center around the use of inferior materials and improper ownership practices.
The investigation has unmasked a Thai-Chinese steel provider, Xin Ke Yuan Steel, possibly supplying inadequate materials that failed to meet stringent safety standards. The Industry Minister highlighted that specific steel rods from the site didn’t align with necessary regulations, intensifying suspicions about the company’s operating practices, already shadowed by prior indiscretions. However, the company contests these findings, insisting their products have consistently cleared safety checks.
🇹🇭🇨🇳 CHINESE EXEC ARRESTED AFTER SKYSCRAPER TURNS CRUMBLES IN BANGKOK
A 30-story building straight-up collapsed during an earthquake, and now a Chinese executive is in cuffs.
Thai officials say the quake hit hard—but bad construction and sketchy business moves made it deadly.… https://t.co/SOwWwiGdZh pic.twitter.com/czxojKzcxX
— Mario Nawfal (@MarioNawfal) April 21, 2025
Legal and Diplomatic Conundrums
As the rubble is sifted for survivors, legal action advances with Zhang Chuanling’s arrest. He faces charges of evading Thai regulations that restrict foreigners from holding more than a minority stake in local ventures. Such laws aim to prevent external dominance and ensure genuine partnerships in Thailand’s economy. Yet, the skeletal skyscraper collapse casts clouds over whether these laws were subtly bypassed with nominee shareholders officially unveiled.
Authorities are extending probes into other projects helmed by China Railway Number 10, spotlighting potential counterfeit practices. The Prime Minister advocated for transparent, comprehensive inspections across all projects associated with this controversial firm, a move met with mixed political reactions due to concerns about escalating tensions with China, Thailand’s key trade ally.
Crisis Compounded by Profiteering?
Alarming revelations of financial malpractice at Xin Ke Yuan indicate systemic tax evasion through fraudulent invoices and underbidding that compromises construction quality. As Thai workers continue to search the site, scrutiny on Chinese partners grows, especially amid resistance to their involvement in rescue operations. While this stance aligns with sovereignty concerns, it risks straining diplomatic relations between the two nations, which are already entangled in shared economic initiatives.
