Chinese Contruction Firm Under Investigation Following Bangkok Building Collapse

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.

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

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.