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A third-generation Thai Chinese, Chuan was born in Trang province. As the leader of the Democrat Party, Chuan was elected in 1992 after the abortive coup by General Suchinda Kraprayoon, thus becoming Thailand's first prime minister to come to power without either aristocratic or military backing.<br/><br/>

His first administration consisted of a five party coalition of the Democrat, New Aspiration, Palang Dhamma, Social Action and Social Unity Parties until he was defeated in the 1995 election, but assumed power in late 1997 following the fall of the Chavalit Yongchaiyudh administration, which was held responsible for the economic crisis that beset Thailand in 1997.

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