How are ASEAN economies impacted by U.S. tariffs on Chinese goods?

ASEAN exporters are facing increasing pressure from U.S. tariffs and heightened scrutiny of transshipments of Chinese goods through their countries.

What is the status of ASEAN's trade relationship with China?

ASEAN's services trade surplus with China reached $9 billion in 2023, and China's investments have helped drive rapid growth in ASEAN exports to the U.S. However, the surge of cheap Chinese imports is also raising concerns about deindustrialization in some ASEAN countries.

What strategies are ASEAN nations adopting to address these trade challenges?

ASEAN countries are implementing a mix of defensive and offensive measures, including imposing anti-dumping duties, strengthening customs and origin verification systems, and working to enhance their own manufacturing capabilities to promote trade diversification.

Home / Business and Economy / ASEAN Economies Caught in Superpowers' Trade Tug-of-War

ASEAN Economies Caught in Superpowers' Trade Tug-of-War

11 Nov

•

Summary

ASEAN exporters face pressure from U.S. tariffs and Chinese goods dominating domestic markets
ASEAN services trade surplus with China reached $9 billion in 2023
Surge in cheap Chinese imports raises concerns about deindustrialization in Indonesia and Thailand

ASEAN Economies Caught in Superpowers' Trade Tug-of-War

As of November 11, 2025, Southeast Asian nations are navigating a complex trade landscape, facing pressure from both the United States and China. On one hand, ASEAN exporters are grappling with increasing U.S. tariffs and heightened scrutiny of transshipments of Chinese goods. On the other, their domestic markets are being increasingly dominated by Chinese products.

The region's services trade has also become heavily dependent on China, with ASEAN's $25 billion services trade surplus in 2023 including a $9 billion surplus with China alone. Some ASEAN economies, like Thailand, are hoping to expand this surplus as Chinese tourism returns to pre-pandemic levels.

However, the surge in cheap Chinese imports is creating competition with local manufacturers and has raised concerns about deindustrialization in countries like Indonesia and Thailand. This was a key factor behind recent intense political protests in Indonesia.

To address these twin challenges, ASEAN nations are adopting a multi-pronged strategy. They are imposing anti-dumping duties and strengthening customs and origin verification systems to address U.S. concerns over transshipments. At the same time, they are working to enhance their own manufacturing capabilities to promote trade diversification and reduce reliance on China-centric supply chains.

Ultimately, ASEAN economies find themselves caught between a rock and a hard place, needing to balance their relationships with the two superpowers without antagonizing either side. The path forward will require a delicate balancing act as they navigate this complex trade landscape.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.