New Tariffs on Mainland China: Should ASEAN Be Concerned?

Tariffs from the U.S. and Europe are pushing many Chinese factories to relocate to Southeast Asia. While this brings investment and economic growth, it also raises concerns.

Local manufacturers may struggle to compete with larger Chinese firms that have more capital and experience. Rapid industrial expansion could strain resources, drive up labour costs, and lead to stricter regulations. Some Chinese companies might dominate certain sectors, making it harder for smaller local firms to survive.

Additionally, the U.S. and Europe could impose new tariffs on ASEAN goods if they suspect Chinese exports are bypassing restrictions. To maximize benefits and minimize risks, ASEAN governments must carefully manage this shift.