Source: Global Times
The Interpreter, a website of the Lowy Institute for International Policy in Australia, published an article on June 3 titled "The tariff war is accelerating Asia's trade transformation." The US government's tariff policies have further increased the urgency for the entire Indo-Pacific region to readjust its economic policies.
In response to the tariff war initiated by the United States, China has taken strong countermeasures. China has raised the tariff rate on imports originating from the US to 125%, filed a lawsuit against the US relevant practices under the WTO dispute settlement mechanism, and implemented export controls on related key items. Some US enterprises have been placed on China's Unreliable Entity List, and the import qualifications of some US enterprise products into China have been suspended. Although the tariff "ceasefire" agreement reached in May - the Joint Statement of the Sino-US Geneva Economic and Trade Talks - reduced the US tariffs on Chinese goods from 145% to 30%, and the relevant tariffs imposed by China on US goods from 125% to 10%, China believes that this result proves the effectiveness of its firm negotiation stance.
From a geopolitical economic perspective, China is repositioning itself. China is increasing efforts to conduct trade and investment with ASEAN and the Global South, consolidating its influence through tariff reductions and infrastructure commitments. In May this year, China completed the third phase of the China-ASEAN Free Trade Area negotiations launched in 2022 with the ten ASEAN countries, demonstrating China's efforts to position itself as a reliable economic and trade partner, in stark contrast to the unpredictable United States.
Japan and South Korea are bearing significant but manageable tariff costs. India is pushing to obtain tariff exemptions through negotiations with the US before July. India's cautious foreign policy reflects the country's desire to maintain independence while benefiting from the current turmoil.
To cope with the impact, ASEAN has accelerated the implementation of the Regional Comprehensive Economic Partnership (RCEP). The Indo-Pacific region is not withdrawing from global trade but is taking more determined hedging measures. The RCEP's integration of origin rules and enhancement of cross-regional value chains help member economies enhance resilience.
In the entire Indo-Pacific region, the economic focus is shifting toward achieving regional self-reliance and strength, adhering to pragmatic pluralism, and readjusting relevant economic and trade systems. It remains uncertain whether the US can rebuild trust here, but regional economies are no longer waiting for the answer. (By Vu Lam, translated by Wang Huicong)
Original article: https://www.toutiao.com/article/7511862198541517364/
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