Earlier this month, Indonesia successfully hosted the International Monetary Fund-World Bank Group Annual Meetings against the backdrop of worsening global economic woes, thanks to United States President Donald Trump’s decision to play hardball against its trade partners. China is the especial target of US ire, with the US pursuing aggressive economic policies against China.
Trump’s aggressive stance toward China has occurred at an inopportune moment for the Asian giant, as it tries to tackle its overcapacity problem. Over the past few years, China has produced too much steel, cement, coal, plate glass and other materials as a result of cheap credit and local governments’ offering economic incentives to attract factories to their regions.
As the Chinese economy has slowed, demand for these products has fallen, saddling factorie...
Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.