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Jakarta Post

Window of opportunity to Chinese investment

  • Yohannes Sulaiman

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PREMIUM
Jakarta   /   Mon, October 29, 2018   /  11:09 am
Window of opportunity to Chinese investment US President Donald Trump stands up after signing trade sanctions against China on March 22, 2018 in the Roosevelt Room of the White House on March 22, 2018. Trump will impose tariffs on about $50 billion in Chinese goods imports to retaliate against the alleged theft of American intellectual property, White House officials said Thursday. (AFP/Mandel Ngan)

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.