Thai authorities are intensifying investigations into two Chinese companies linked to the construction of the collapsed State Audit Office building in Bangkok, with scrutiny expanding to dozens of related firms over potential legal violations, the Ministry of Commerce revealed Thursday.

DSI suspects proxy shareholdings in Chinese builder of collapsed skyscraper

Commerce Minister Pichai Naripthaphan confirmed that China Railway Engineering No.10 (Thailand) Co (CREC) and Xin Ke Yuan Steel Co—which had 49% and 80% Chinese ownership, respectively—are under investigation for possible breaches of foreign business ownership laws and construction standards. The Department of Business Development has handed over findings to the Department of Special Investigation (DSI), which has taken up the case.

CREC, a partner of Italian-Thai Development Plc in the ITD-CREC consortium, was constructing the ill-fated 30-story building when it crumbled during the March 28 Myanmar earthquake. Preliminary tests by the Iron and Steel Institute of Thailand suggest substandard steel from Xin Ke Yuan Steel was used in the project.

Bangkok building collapse. All construction by China Railway No.10 Engineering Group to be investigated. https://t.co/BSCdP8IwBm

— Aardvark (@aardvark_uk) April 3, 2025

The probe has widened to 13 companies tied to CREC and 24 linked to Xin Ke Yuan Steel, with multiple agencies now involved. The Anti-Money Laundering Office is examining financial transactions, the Revenue Department is auditing tax records, and the Thai Industrial Standards Institute is testing materials. Authorities also discovered Xin Ke Yuan Steel’s Rayong factory had been shuttered since January over unrelated violations, with 2,400 tonnes of steel seized.

Meanwhile, the Department of Employment is vetting migrant worker permits at the site, while the Department of Industrial Works is inspecting all steel suppliers. The Comptroller-General’s Department is reviewing procurement contracts, and the Transport Ministry is reassessing CREC’s other projects, including a segment of the Thailand-China high-speed rail, the Bangkok Post reported.

Deputy Commerce Minister Napintorn Srisunpang said at least 26 projects by 14 linked firms are under review to “prevent further risks to life and property.”

CREC’s parent company, China Railway Group, faces mounting financial pressure after rapid overseas expansion. With $211 billion in liabilities—nearly double its 2019 debt—the state-backed firm has aggressively pursued Belt and Road Initiative projects abroad as domestic demand wanes, the New York Times reported.

“The pressure to generate cash flow to service debt can be quite intense,” said Victor Shih, a Chinese finance expert at UC San Diego, hinting at possible corners cut in pursuit of contracts.

The Chinese Embassy in Bangkok pledged cooperation, stating on Facebook that Beijing “instructs companies to abide by local laws” and supports Thailand’s investigation. CREC has secured 11 Thai government contracts, including a completed school, but its future in the country now hangs in the balance as forensic and financial probes unfold.

Search teams detect signs of life in collapsed Bangkok building

With 72 workers still missing under the rubble, the disaster has escalated into a multinational accountability crisis—one that could reshape China’s infrastructure ambitions in Southeast Asia.

-Thailand News (TN)