In a move to counter the flood of cheap Chinese goods, Southeast Asian nations have decided to impose hefty tariffs on imports. Indonesia plans to impose a 200% tariff on Chinese textiles and is also considering new duties on other low-cost imports like ceramics, clothing, shoes, cosmetics, and electronics.

Chinese dumping practices have severely impacted Indonesia’s labor-intensive industries. The textile sector, which employs 3.9 million people, has been particularly hard hit, with 36 factories closing since 2019 and 31 others downsizing their workforce.

Similarly, Malaysia has begun implementing tariffs on Chinese goods. In January 2024, Malaysia imposed a 10% tax on Chinese imports valued at less than 500 ringgit ($108). Additionally, Malaysia’s Trade Ministry plans to introduce anti-dumping legislation in parliament next year to protect local businesses from unfair Chinese trade practices.

Thailand is also concerned about the growing trade deficit with China. The country has imposed a 7% tariff on Chinese goods valued under 1,500 baht ($42), but local businesses remain worried about the impact of cheap Chinese imports on their markets.

China has turned to Southeast Asia as a key dumping ground for its low-cost goods after facing trade barriers in the United States. Analysts suggest that China is pushing its excess production into global markets, particularly in Southeast Asia, Africa, and South America, as it struggles with economic slowdown at home.

In response, Southeast Asian nations are taking stronger measures to protect their domestic industries from the influx of Chinese goods, signaling a significant shift in their trade policies towards Beijing.