Friends, it's been a lot of fun lately! The Indonesian government suddenly imposed tariffs of up to 100% to 200% on shoes and clothes from China, which frightened many people. As Indonesia's Minister of Trade, Zulkifli Hassan can be said to have "shown his sword", and directly "fired a shot" at Chinese commodities with an order.
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This is not a trivial matter, once it comes into effect, the price of Chinese products in the Indonesian market will "skyrocket".
As we all know, the Indonesian government's intention in this wave of operations is nothing more than to protect its own footwear and clothing industry.
Because for a long time, Chinese goods have occupied a large market share in the local area by virtue of their "affordable prices", which is undoubtedly a "challenge" for local enterprises.
Now, by imposing heavy taxes, the government is tantamount to "setting up a camp" for local industries.
After all, once Chinese goods are "worth a lot of money", local goods will naturally be "fragrant" in comparison.
However, friends should remember the old saying, "If you are short, you will be long".
It is difficult to fundamentally improve the core competitiveness of domestic products by "temporarily raising prices" alone.
This wave of tax hikes can be described as "one stone stirs up a thousand waves".
For the majority of consumers, the rise in the price of goods in China is undoubtedly a "bombshell".
In particular, some lower-income households may have to readjust their consumption structure.
For some businesses that rely on imported goods, the impact is even worse.
They may have to recalibrate their business strategies to alleviate cost pressures.
In short, this wave of tax hikes can be described as a "double whammy" for consumers and businesses.
But don't worry too much, friends.
After all, the current tax increase is still limited to a few products such as shoes and clothing.
In addition, many of China's exports are indeed in the "low-end" category, and even if prices rise, the impact on the overall market will not be too great.
What's more, this move is only a "temporary response" from the Indonesian government.
In order to fundamentally protect the local industry, the key is to improve the competitiveness and internationalization level of its own manufacturing industry.
Otherwise, no matter how high the tax is, it will be difficult to escape the end of "the bamboo basket is empty".
Of course, Indonesia's move should not be underestimated.
If the situation continues to "worsen", it is likely to trigger a "growing scale" trade dispute and tariff retaliation war.
At that time, not only China and Indonesia, but also the entire Southeast Asian region, the trade order may be affected.
We should "deal with it as soon as possible" to avoid the situation "getting out of control".
Looking at the overall situation, it is clear that raising tariffs alone to protect domestic industries is a "palliative, not a cure" approach.
The Indonesian government should focus on improving the overall strength of the country's manufacturing industry and cultivating new economic growth points.
Otherwise, even if you get a "respite" temporarily, you will eventually be "left behind outside the world's factory".
Let's wait and see! However, I sincerely hope that the two sides can resolve their differences through dialogue and consultation and jointly safeguard regional peace and development.
Because only through the "mutual benefit and win-win" approach can the two peoples truly benefit from it.
Right, friends? As ordinary people, although we have no right to intervene in national affairs, we can at least call on governments to cherish the current situation of peaceful development and avoid "tearing their faces if they disagree".
We all live in a closely connected global village, and any country's "self-appreciation" may seriously affect the operation of the global industrial chain.
Let's hope that through constructive dialogue, we can finally find a way out of the "best of both worlds"!