July 4, 2024

China Economic Update – 4 July 2024

Indonesia may mark a turning point for EM trade policies with China

The flood of Chinese exports since mid-2023 has increased trade tensions between China and various major trading partners. The recent focus in the media has been on high tech exports to advanced economies – with the United States and European Union imposing high profile tariffs on electric vehicles in recent months – however there has also been strong growth in China’s exports to South East Asia in recent times (including in lower value products). This has culminated in Indonesia announcing that it intends to raise tariffs on various Chinese imports to between 100%-200%, with the stated goal of protecting domestic industries. Other emerging markets may follow Indonesia’s lead, leaving reduced opportunities for China’s manufacturers in coming years.

For further details, please see the China Economic Update (4 July 2024)