Chinaâ€™s Economic Relations with Indonesia: Threats and Opportunities
The paper examines the development of Chinaâ€™s economic ties with Southeast Asia over the last two decades, culminating in the inauguration of the ASEAN-China Free Trade Agreement (ACFTA) in 2010. Particular reference is made to Chinaâ€™s trade ties with Indonesia. Although two-way trade between China and Indonesia has grown rapidly since 2000, Indonesian exports to China are dominated by primary products, while imports from China are dominated by manufactures. While this pattern might reflect short-term comparative advantage in both economies, it is causing some concern in Indonesia. The paper assesses these concerns, and possible political reactions.
Volume (Year): 30 (2011)
Issue (Month): 2 ()
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