An ambitious plan to open a Chinese-owned grocery store in Thailand has been scrapped.

A year ago, the Thai government offered a $1 million grant to the China-based Asian food giant Dandong-based China Food and Grocery Group (CFG), which in turn invited the company to submit a plan to become the new store’s operator.

Thai Prime Minister Somyot Poongsuwan has been critical of the plan, saying it would have been better if the proposal had been made earlier.

After the announcement was made, the CFG issued a statement saying it had accepted the government’s offer.

The store will be built on the site of the old Thai grocery stores, which were shuttered due to the outbreak of the coronavirus in late December last year.

On Friday, Dandang’s Chinese-controlled grocery chain said the proposal to open the store had been rejected.

“There were many conditions, including that we should establish a fully licensed food processing facility, including the ability to export and import the products that are produced in our factory,” it said in a statement.

Chinese grocery chain has denied plans to open Chinese-run grocery store.

In January, the government said it had offered the CFg a $2.4 million grant in exchange for the store’s establishment.

CFG said in December that it was ready to start operating the store, which would be located at the border of the two countries.

Under the scheme, a company would be granted a 10-year lease of the former Thai grocery premises.

The new Chinese-registered store will have a capacity of 30,000sq ft and will be set up in the area where a former Thai supermarket once stood.

It would operate from a two-storey structure.

The CFG’s proposal is the latest in a string of attempts by China to open grocery stores in Thailand, with the country already having several, including a joint venture in Laos, which opened in 2012.

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