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Govt sees opportunity in US-China trade war, but businesses disagree
The government says Indonesia may benefit from Washington’s newly introduced tariffs on Chinese goods, but businesses beg to differ, warning that Indonesian export goods were not ready to meet US demand.
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BYD electric vehicles (EVs) line up before being loaded onto the BYD Explorer No. 1 roll-on, roll-off vehicle carrier for export to Brazil, at the port of Lianyungang in Jiangsu province, China, on April 25, 2024. (China Daily via Reuters/-)
T
he government says Indonesia may benefit from Washington’s newly introduced tariffs on Chinese goods, but businesses beg to differ, warning that Indonesian export goods were not ready to meet United States demand.
Coordinating Economic Minister Airlangga Hartarto told The Jakarta Post on May 17 that Indonesia might snatch some of the US market share that otherwise would have been claimed by Chinese exporters and that Jakarta would try to maximize critical mineral exports.
“Yes, for [the goods affected by the US policy], we can get them into America. […] The opportunity is big, it’s big,” said Airlangga.
Last week, US President Joe Biden announced massive increases in tariffs on electric vehicles (EVs) and semiconductors from China, accusing Beijing of “cheating” rather than competing.
The US government claims China is pushing its industries by subsidizing strategic sectors to undercut foreign competitors and produce more than the world can absorb. China denies that accusation and says its manufacturers are simply working efficiently.
AFP wrote that the measure was taken on account of Biden seeking to win over blue-collar voters in swing states by looking “tough on trade” ahead of an election rematch against Donald Trump in November.
US Treasury Secretary Janet Yellen urged the European Union to follow suit on Tuesday, and The Guardian reported that EU Commission president Ursula von der Leyen hinted Brussels was doing just that.
