Indonesia has recently imposed significant tariffs on Chinese imports, ranging from 100% to 200%, including products from footwear, clothing, textiles, cosmetics, and ceramics.
As we informed you in our update last week, the primary reason behind this move is to protect Indonesia’s micro, small, and medium enterprises from being overwhelmed by the influx of low-cost and often low-quality Chinese goods, which officials argue could lead to the collapse of many local businesses.
Many Chinese products have been criticized for their poor quality and potential health hazards, raising concerns among Indonesian consumers. For instance, there have been reports of toxic materials in toys and unsafe chemicals in cosmetics.
Chinese scholars and officials have voiced their grievances with Indonesia’s new tariffs. He Wenping, a professor at the Chinese Academy of Social Sciences, criticized Indonesia for changing its import regulations to allow more foreign goods. He highlighted the irony of Indonesia’s stance, it criticizes China’s overcapacity while simultaneously increasing its imports.
Another aspect of this trade conflict is the poor working conditions in many Chinese factories. Reports have highlighted that workers in these factories often face long hours, low wages, and unsafe working environments. These conditions not only raise ethical concerns, but also contribute to the production of substandard goods that flood international markets.
China’s aggression in the South China Sea is another significant factor in the trade conflict. This includes illegal territorial claims and confrontations with Indonesian vessels, actions that are unacceptable and further strain relations.
These aggressive actions not only threaten Indonesia’s sovereignty and maritime rights but clearly undermine regional stability. China’s disregard for international norms and the welfare of its own workers, who often endure poor conditions, low wages, and unsafe environments, highlights the broader ethical issues in its trade practices.
