Southeast Asia fears Chinese dumping if Trump goes through with his tariffs
Manufacturers in ASEAN countries are concerned about what might happen if a trade war with China breaks out once the US president takes office in a few days. The fear that Chinese products that no longer take the road to the West could be dumped in their markets, already grappling with tough competition from the “Made in China”.
Bangkok (AsiaNews/Agencies) – As Donald Trump is set for his inauguration and return to the White House on 20 January, fears are rising to a fever pitch in the East over the threat of a trade war with China.
As is well known, during the election campaign, Trump promised to impose tariffs on imports, up to 100 per cent for some goods.
Washington and Beijing are not the only stakeholders in this game, as many countries in Southeast Asia fear being crushed in this confrontation.
If barriers go up, it will be harder for Chinese products to find markets in the US, resulting in huge surpluses that will need other outlets. In Southeast Asian countries, many are concerned that massive quantities of Chinese products could be dumped in their own markets, jeopardising local manufacturers.
In Thailand, the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) recently expressed these concerns, urging the Thai government to take steps to stop low-cost Chinese products from entering the local markets, which could be flooded in coming months.
“The current measures are not strong enough to protect local manufacturers as they still face a flood of these imports," said Sanan Angubolkul, chairman of the Thai Chamber of Commerce, a member of the JSCCIB.
Thailand has a 7 per cent value-added tax on imports of goods worth less than 1,500 baht, to slow sales.
The authorities have already said they plan to sign a memorandum of understanding with e-commerce platforms in coming weeks to remove imported substandard products. Now the JSCCIB wants further measures to safeguard local producers.
A survey by the Federation of Thai Industries (FTI) reported sales declined because of the influx of low-cost goods sold via online platforms. FTI Vice President ML Peekthong Thongyai explained that the trend is clearly visible in sectors such as garments, furniture, plastic products and packaging.
Official data confirm these fears. According to Chinese customs data released earlier this week, Chinese exports grew by 7.1 per cent year-on-year in 2024, reaching 25.45 trillion yuan (US$ 3.470 trillion), topping 25 trillion for the first time.
“China consolidated its position as the world's largest trading nation in goods,” said Wang Lingjun, deputy head of the General Administration of Customs, at a press conference on Monday.
Meanwhile, Chinese exports to ASEAN member states rose from 6.9 per cent in the early 2000s to about 16 per cent today. Chinese customs data show that the ASEAN area became China's main export market in 2023.
The increasing flow of Chinese goods into Southeast Asia has been a boon for consumers who now have access to cheaper products than those made in the ASEAN area, providing more options for low-income households.
Some high-tech items, like electric vehicles, have also become affordable, challenging old perceptions that Made-in-China products were of suspect quality and workmanship.
The influx has however proved to be a bane for local businesses, which struggle to match the low prices offered by their Chinese rivals.
Muhammad Zulfikar Rakhmat, director of the China-Indonesia Desk at the Center of Economic and Law Studies (CELIOS) in Jakarta, told the CNA agency that textiles and ceramics were the main victims in Indonesia.
Last year, Indonesia's textile, garment and footwear industry alone shed more than 50,000 jobs as a result of plant closures.
RED LANTERNS IS THE ASIANEWS NEWSLETTER DEDICATED TO CHINA. WOULD YOU LIKE TO RECEIVE IT EVERY THURSDAY? TO SUBSCRIBE, CLICK HERE.
.png)
