US tariffs leave Indonesia drowning in Chinese importsーNHK WORLD-JAPAN NEWS
china and the US have been odds over trade temporarily imposing additional tariffs on each other of over 100% That’s led Chinese firms to seek out new markets for their exports The month of April saw China’s exports to the 10 ASEAN countries swell by 20% compared to the same time last year The figure was searched hardest in Indonesia home to ASEAN’s largest population where the jump was 36% A trade fair in Indonesia’s capital Jakarta 150 booths line the halls of one of the city’s largest venues Many of the exhibitors are from China Indonesia’s largest trading partner Cheap goods from there have been pouring in for around a decade now but the US tariffs have turned a steady stream into a flood Imported Chinese products are cheap and competitive Domestic products of the same quality are a little more expensive Chinese exhibitors are well positioned to take advantage Business in Indonesia is developing rapidly Indonesians seem to be happy with both the price and quality of Chinese products This Chinese shop makes and sells cosmetics and beauty accessories Just 10% of its exports go to the US but it joined the trade fair in Indonesia for the first time If the US doesn’t want to trade we just sell to another country The owner recognizes an opportunity to diversify in Indonesia and its 280 million strong population This trip to Indonesia made me even more confident The population is so large I’d like to work on developing the market However many in Indonesia worry about becoming reliant on Chinese imports The textile and garment industries have long been exposed to competition from cheap imports A local association says some 60 companies have gone bankrupt and a quarter of a million people laid off in the past two years They see the influx of Chinese products as a major factor West Java is at the heart of the industry There are no orders so there’s no work There are months when there is literally nothing at all Factory owner Nandi Herdam has been reliant on domestic sales but they’ve seen a significant drop after a series of bankruptcies among his clients He explains that these cheap pajamas from China cost about $1.50 The equivalent from Nandi’s factory would cost twice as much He’s all too aware that the US tariffs will make the situation even worse What I’m afraid of is that Chinese imports that were already pouring in before the Trump tariffs could become an unstoppable flood The damage could be devastating In a lastditch effort he launched an online shop with other local businesses But even that hasn’t been enough Our stuff just didn’t sell and we ended up losing money Nandi swallowed his pride and started hawking clothes on the streets I never imagined I’d end up selling on the streets like this but with fewer ways to reach customers it feels inevitable If the cheap imports from China and beyond keep coming it’s only a matter of time before our whole industry disappears The lack of clarity surrounding the US tariffs and the surge in Chinese imports are quartering people and businesses already struggling pushing them closer to the edge Other economies in Southeast Asia such as Thailand are also starting to feel the same pressure Chinese President Xi Jinping and Premier Lee Tiang recently visited several Assean countries reaffirming their commitment to deeper regional economic cooperation For a country that is enjoying rapid growth like Indonesia it seems there will be hard decisions on striking a balance in relations with China and protecting its own interests while helping domestic businesses thrive
After the US imposed steep tariffs on China, a surge of low-cost exports was redirected to Southeast Asia, with Indonesia bearing the brunt. Now, local businesses are collapsing under the pressure as they struggle to survive. #politics #trade #indonesia #usa #china #asean
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