JAKARTA, RAKYAT NEWS- A trade war involving China typically centers around economic tensions and disputes between China and other countries, often stemming from issues such as trade imbalances, intellectual property rights, and market access. These conflicts escalate when countries impose tariffs, quotas, or other restrictions on imports from each other, aiming to protect domestic industries or address perceived unfair trade practices.
The United States has been a major participant in recent trade disputes with China. The conflict intensified in 2018 when the Trump administration imposed tariffs on billions of dollars worth of Chinese goods, citing concerns over intellectual property theft and the trade deficit. In response, China retaliated with its tariffs on American goods, leading to a tit-for-tat escalation that strained bilateral relations.
The impacts of a trade war with China extend beyond tariffs. They can disrupt global supply chains, increase costs for businesses and consumers, and dampen economic growth. For example, industries reliant on imported Chinese goods faced higher costs, prompting some companies to consider relocating production or passing costs onto consumers.
Moreover, trade wars can have geopolitical implications. They may strain diplomatic relations between countries and influence global economic stability. International organizations like the World Trade Organization (WTO) often play a role in mediating disputes and encouraging negotiations to de-escalate tensions and find mutually beneficial solutions.
Despite the challenges, some argue that trade wars can be a tool for addressing long-standing trade grievances and leveling the playing field. However, critics caution that such conflicts risk broader economic repercussions and emphasize the importance of diplomacy and cooperation in achieving sustainable trade relationships.
In a strategic move aimed at bolstering domestic industries, Indonesia is set to implement import duties of up to 200 percent on textiles, a decision not aimed at any specific country, particularly China, emphasized Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan.
Speaking at a recent coordination meeting chaired by President Joko Widodo, Luhut clarified that these measures are designed to safeguard Indonesia’s national interests while adhering to international trade norms. The decision includes extending the application of Safeguard Tariffs (BMTP) to various textile products, a move intended to shield local industries.
“We are not targeting any specific country, especially China. All steps are taken based on our national interest,” stated Luhut in Jakarta.
The imposition of these tariffs, according to Luhut, will be thoroughly assessed to align with domestic industry needs. He highlighted ongoing communication with the Minister of Trade to ensure that while prioritizing national interests, Indonesia maintains its partnerships with friendly nations.
Luhut reaffirmed the importance of Indonesia’s comprehensive strategic partnership with China in trade and investment, emphasizing the mutual trust and respect between the two countries. The intention is to uphold these positive relations through continuous dialogue on bilateral policy measures.
Prior to this decision, Minister of Trade Zulkifli Hasan had announced plans to levy duties, potentially reaching 200 percent, on Chinese imports. This initiative, he explained, aims to foster growth and development among Indonesia’s micro, small, and medium enterprises (MSMEs), reflecting a robust response to previous trade regulations deemed inadequate for protecting local industries.
The Indonesian government remains committed to navigating these policy decisions with a balanced approach, ensuring economic growth while maintaining diplomatic relations with international partners. (Uki Ruknuddin)

YouTube player