# Chinese Contruction Firm Under Investigation Following Bangkok Building Collapse

- Link: https://www.thailand-business-news.com/china/206749-chinese-contruction-firm-under-investigation-following-bangkok-building-collapse
- Published: 2025-04-02T11:37:01+07:00
- Author: Vivian Wei

The collapse of a 33-story building under construction in Bangkok’s Chatuchak district
on March 28, 2025, following a 7.7-magnitude earthquake centered near Mandalay, 
Myanmar, has triggered an investigation into the Chinese firm involved in the project.

The building, intended for Thailand’s State Audit Office (SAO), was a joint venture
between Italian-Thai Development Plc and China Railway Number 10 (Thailand) Ltd,
with the latter backed by China Railway No. 10 Engineering Group, a state-owned 
Chinese company holding a 49% stake—the maximum allowed for foreign entities in 
Thailand.

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## Key Points

 * The Thai government is investigating all construction projects linked to the 
   Chinese contractor, China Railway No.10 Engineering Group, following the collapse
   of the State Audit Office’s building in Bangkok during an earthquake.
 * There are allegations that substandard steel bars were used in the construction
   of the collapsed building, with preliminary investigations suggesting that the
   steel was produced by a factory previously shut down for violations.
 * The Commerce Ministry has found that shareholders of China Railway No.10 Engineering
   Group are linked with 13 other companies, and it will investigate whether the
   group was involved in any collusion or used Thai nominees.

The Commerce Ministry is investigating whether the group was involved in collusion
or used Thai nominees. Bloomberg reported that the contractors used substandard 
steel bars made by a factory that had been shuttered by authorities. The 30-storey
building was the only one to crumble in Bangkok during the earthquake, killing at
least a dozen workers and trapping dozens more.

The skyscraper, located on Kamphaeng Phet Road near the Chatuchak Weekend Market,
was 30% complete, undergoing piping and glass wall installation when the quake struck.
Construction began in 2020, and the building had topped out in April 2024. As of
April 1, 2025, the collapse has resulted in **20 confirmed deaths, 33 injuries, 
and 77 people still unaccounted** for, primarily construction workers, many of whom
were migrant laborers from Myanmar. Rescue efforts continue, with thermal imaging
drones detecting signs of life, though survival chances are fading. The United States
and Israel have contributed personnel and scanning equipment to aid the search.

## Investigation and Allegations of Substandard Practices

Thai authorities have launched a multi-pronged investigation into the collapse, 
which was the only high-rise in Bangkok to completely crumble despite the city’s
skyline being dotted with similar projects. Deputy Prime Minister Anutin Charnvirakul
ordered a probe, giving a seven-day deadline for results, focusing on the building’s
design, materials, and construction practices. Initial findings are damning: the
Ministry of Industry discovered **substandard steel bars at the site, produced by
Xin Ke Yuan Steel Co., a factory in Rayong province that had been shuttered in December
2024 for safety violations.**

Tests by the Iron and Steel Institute of Thailand revealed the steel failed standards
for mass, chemical composition, and stress resistance. Industry Minister Akanat 
Promphan noted that many factories, including those using outdated equipment relocated
from China, have been shut down in recent months, seizing assets worth 360 million
baht.

**An anti-corruption watchdog had previously flagged irregularities in the project,
raising concerns about construction quality and adherence to earthquake-resistant
building codes.** Experts like Prof. Suchatchavee Suwansawas, a civil engineer, 
emphasized that the collapse was abnormal, as other high-rises withstood the quake.
Dr. Christian Málaga-Chuquitaype from Imperial College London pointed out the building’s**“
flat slab” construction—a cost-saving method not recommended in earthquake-prone
areas due to its brittle failure risk.** Bangkok’s soft soil, which amplifies seismic
waves, likely exacerbated the structural failure, though material and design flaws
remain under scrutiny.

## Suspicious Behavior and Broader Probes

**Adding to the controversy, Thai police detained four Chinese nationals on March
31 for attempting to remove 32 files from the site,** which contained contractor
and subcontractor details. The men, who had work permits and were linked to Italian-
Thai Development, claimed they were gathering documents for insurance claims but
were released after questioning, with the files seized. The Chatuchak district office
plans to file a complaint against them. This incident has fueled speculation of 
a cover-up, with posts on social media reflecting public skepticism about the firm’s
practices, some labeling the project as another “shoddy Chinese” endeavor.

This is particularly troubling given that the construction was managed by “China
Railway No.10 Engineering Group,” a subsidiary of the construction giant “China 
Railway Group” (CREC).)

China Railway Group is a major Chinese state-owned enterprise specializing in infrastructure
development both within China and internationally. The company operates through 
various subsidiaries, each designated by a number, which manage projects across 
different regions. For instance, **China Railway No.10** is involved in construction
projects in Thailand, while **China Railway No.9** oversees projects in Saudi Arabia,
and **China Railway No.8** is responsible for infrastructure development in Iraq

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The investigation has expanded beyond the SAO building. Prime Minister Paetongtarn
Shinawatra ordered a review of all projects linked to China Railway No. 10, including
the Office of the National Water Resource building and sections of the Bangkok-Nong
Khai high-speed railway. **The Department of Special Investigation (DSI) is probing
whether the company used Thai nominees to skirt foreign ownership laws**, as 51%
of its shares are held by Thai individuals, including Sophon Meechai (40.80%), Prachuab
Sirikhet (10.20%), and Manas Sri-anant (less than 1%). The Commerce Ministry is 
collaborating with the Royal Thai Police and Revenue Department to investigate potential
collusion.

China’s ambassador to Thailand, Han Zhiqiang, expressed condolences and pledged 
cooperation, bringing an expert from the Chinese Ministry of Emergency Management
to inspect the site. However, the Chinese contractor was barred from entering the
area, and promotional posts about the project were deleted from China Railway’s 
social media accounts shortly after the collapse, raising questions about transparency.

## Public sentiment in Thailand is increasingly wary

The collapse has heightened fears about high-rise safety in Bangkok, a city unaccustomed
to earthquakes, where pre-2009 buildings often lack seismic standards. Governor 
Chadchart Sittipunt has urged owners of tall buildings to inspect their structures
within two weeks, but enforcement remains a challenge.

The rapid deletion of China Railway’s posts and the attempted removal of files suggest
an effort to control the narrative, potentially shielding larger stakeholders from
accountability. Moreover, the focus on Chinese involvement might deflect attention
from Thai partners like Italian-Thai Development, whose role in the joint venture
warrants equal scrutiny. The disaster underscores the need for stricter regulations,
transparent investigations, and a reevaluation of cost-driven construction practices
in a seismically vulnerable region.

## Systemic Issues and Accountability

The establishment narrative—focusing on substandard materials and construction flaws—
may oversimplify deeper systemic issues. The reliance on foreign contractors like
China Railway, often chosen for cost efficiency, **highlights a broader problem 
of lax oversight in Thailand’s construction boom.** The junta’s influence in Myanmar,
where the quake caused over 2,000 deaths, mirrors Thailand’s own governance challenges,
where political and economic pressures can compromise safety standards.

The aftermath of such disasters often highlights systemic vulnerabilities, exposing
gaps in infrastructure resilience and emergency preparedness. **In both Myanmar 
and Thailand, these events serve as stark reminders of the critical need for transparent
governance** and robust safety protocols to protect citizens from preventable tragedies.
As political dynamics evolve, prioritizing public welfare over political maneuvering
becomes essential to fostering long-term stability and resilience in the region.