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China’s Economic Relations with Indonesia: Threats and Opportunities

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  • Anne Booth

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Abstract

The paper examines the development of China’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 China’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.

Suggested Citation

  • Anne Booth, 2011. "China’s Economic Relations with Indonesia: Threats and Opportunities," Journal of Current Southeast Asian Affairs, Institute of Asian Studies, GIGA German Institute of Global and Area Studies, Hamburg, vol. 30(2), pages 141-160.
  • Handle: RePEc:gig:soaktu:v:30:y:2011:i:2:p:141-160
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    File URL: http://hup.sub.uni-hamburg.de/giga/jsaa/article/view/448/446
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    References listed on IDEAS

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    1. Prema-Chandra Athukorala, 2006. "Post-crisis export performance: The Indonesian experience in regional perspective," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 42(2), pages 177-211.
    2. Prema-chandra Athukorala & Hal Hill, 2010. "Asian trade: long-term patterns and key policy issues," Asian-Pacific Economic Literature, Asia Pacific School of Economics and Government, The Australian National University, vol. 24(2), pages 52-82, November.
    3. Prema-chandra Athukorala, 2009. "The Rise of China and East Asian Export Performance: Is the Crowding-Out Fear Warranted?," The World Economy, Wiley Blackwell, vol. 32(2), pages 234-266, February.
    4. Haryo Aswicahyono & Hal Hill & Dionisius Narjoko, 2010. "Industrialisation after a Deep Economic Crisis: Indonesia," Journal of Development Studies, Taylor & Francis Journals, vol. 46(6), pages 1084-1108.
    5. Jose L. Tongzon, 2005. "ASEAN-China Free Trade Area: A Bane or Boon for ASEAN Countries?," The World Economy, Wiley Blackwell, vol. 28(2), pages 191-210, February.
    6. Olivier Frecaut, 2004. "Indonesia's banking crisis: a new perspective on $50 billion of losses," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 40(1), pages 37-57.
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    Cited by:

    1. Ismanto, Ignatius & Krishnamurti, Indra, 2014. "The Political-Economy of ASEAN-China FTA," Papers 914, World Trade Institute.

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    Keywords

    China; ASEAN; FTA; economy;

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