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First Post
2 days ago
- Business
- First Post
Is China shifting its export destinations amid Trump's tariff antics?
Even in the wake of US President Donald Trump's tariffs, Chinese exports have continued to expand as it has shifted its exports away from the United States to elsewhere, particularly Southeast Asia. The evidence suggests that international trade continues to expand but is increasingly bypassing the United States. read more Even in the wake of US President Donald Trump's tariffs, Chinese exports have continued to expand, and the international trade has also increased. Chinese exports in July grew at 7.2 per cent, surpassing the expected growth of 5.4 per cent. The evidence suggests that Chinese exports as well as the international trade has continued to expand, but it is increasingly bypassing the United States, suggesting that countries are looking for alternatives for exports and imports and are minimising exposure to the US market. STORY CONTINUES BELOW THIS AD China turns to Southeast Asia amid Trump's tariff war There is also indication that China has frontloaded exports to non-US markets for 'transshipment' to the United States before the start of tariffs. The trade data suggests that the Southeast Asian markets play an ever more important role in US-China trade, Xu Tianchen, a senior economist at the Economist Intelligence Unit, told Reuters. 'I have no doubt Trump's transshipment tariffs are aimed at China, since it was already an issue during Trump 1.0. China is the only country for which transshipment makes sense, because it still enjoys a production cost advantage and is still subject to materially higher US tariffs than other countries,' said Xu. Trump has slapped 40 per cent transshipment tariffs, which means that any country rerouting another country's products will face 40 per cent additional tariff. China has been known to use Southeast Asian nations to transship its goods to other countries like the United States and India. The data shows that China's exports to the United States fell 21.67 per cent in July year-on-year and exports to Asean countries grew 16.59 per cent year-on-year, according to Reuters. 'We see very strong demand outside of US' There are indications outside of China as well that the international trade is growing but increasingly bypassing the United States, suggesting that Trump's tariffs have already led to the isolation of the US economy and market. Danish shipping giant Maersk, which controls around 15 per cent of the world's cargo shipping, posted a stronger-than-expected quarterly profit. Considering Maersk's role in shipping, the company's financial health is seen as a reflection of the global trade. STORY CONTINUES BELOW THIS AD Maersk CEO Vincent Clerc told CNBC that the company continues to see a 'very strong demand' and growth everywhere outside of the United States. He further said that he sees demand for containers above expectations. 'A lot of it is driven by a manufacturing boom in China and strong export growth pretty much everywhere in the world except for the US during this quarter, where the tariff-on, tariff-off has had some dampening effect. But overall, I think outside of the United States, we see a continued very strong demand and that is fueling the earnings and the upgrade that we were able to do today,' said Clerc.
The Advertiser
2 days ago
- Business
- The Advertiser
China's exports up 7.2 per cent amid US trade tensions
China's exports beat forecasts in July, as manufacturers made the most of a fragile tariff truce between Beijing and Washington to ship goods before tougher US duties targeting transhipments take effect. Global traders and investors are waiting to see whether the world's two largest economies can agree on a durable trade deal by August 12 or if global supply chains will again be upended by the return of import levies exceeding 100 per cent. US President Donald Trump has raised the prospect of further tariffs, including a 40 per cent duty on goods rerouted to the US via transit hubs, that took effect on Thursday, as well as a 100 per cent levy on chips and pharmaceutical products, and an additional 25 per cent tax on goods from countries that buy Russian oil. China's outbound shipments rose 7.2 per cent year-on-year in July, customs data showed on Thursday, beating a forecast 5.4 per cent increase in a Reuters poll of economists and accelerating from June's 5.8 per cent growth. China's trade war truce with the US - the world's top consumer market - ends next week, although Trump hinted further tariffs may come Beijing's way due to its continuing purchases of Russian hydrocarbons. Imports grew 4.1 per cent, defying economists' expectations for a 1.0 per cent fall and climbing from a 1.1 per cent rise in June, pointing to improving domestic demand as policymakers step up efforts to encourage households to boost spending. "The trade data suggests that the Southeast Asian markets play an ever more important role in US-China trade," said Xu Tianchen, senior economist at the Economist Intelligence Unit. "But it's not all about the transhipments that Trump seeks to stop, ASEAN countries are also importing raw materials and components from China before exporting finished products to the US," he added. China's exports to the US fell 21.67 per cent last month from a year earlier, the data showed, while shipments to ASEAN rose 16.59 per cent over the same period. Trump said on Tuesday the US was close to a trade deal with China and that he would meet his Chinese counterpart Xi Jinping before the end of the year if the world's two largest economies could come to an agreement. China's July trade surplus narrowed to $US98.24 billion ($A151.02 billion) from $US114.77 billion in June. Separate data from the US Commerce Department's Bureau of Economic Analysis on Tuesday showed the US trade gap with China shrank to its lowest in more than 21 years in June. Chinese government advisers are stepping up calls to make the household sector's contribution to broader economic growth a top priority at Beijing's upcoming five-year policy plan, as trade tensions and deflation threaten the outlook. And top leaders have vowed to step up regulation of aggressive price-cutting by Chinese companies that is pushing prices ever lower. But economists warn that reversing the current deflationary slump will be far more difficult than during the last round of supply-side reforms a decade ago, as the downturn now poses a broader threat to employment, which Chinese leaders have emphasised is a core component of social stability. Reaching an agreement with the United States - and with the European Union, which has accused China of producing and selling goods too cheaply - would give Chinese officials more room to advance their reform agenda. with DPA China's exports beat forecasts in July, as manufacturers made the most of a fragile tariff truce between Beijing and Washington to ship goods before tougher US duties targeting transhipments take effect. Global traders and investors are waiting to see whether the world's two largest economies can agree on a durable trade deal by August 12 or if global supply chains will again be upended by the return of import levies exceeding 100 per cent. US President Donald Trump has raised the prospect of further tariffs, including a 40 per cent duty on goods rerouted to the US via transit hubs, that took effect on Thursday, as well as a 100 per cent levy on chips and pharmaceutical products, and an additional 25 per cent tax on goods from countries that buy Russian oil. China's outbound shipments rose 7.2 per cent year-on-year in July, customs data showed on Thursday, beating a forecast 5.4 per cent increase in a Reuters poll of economists and accelerating from June's 5.8 per cent growth. China's trade war truce with the US - the world's top consumer market - ends next week, although Trump hinted further tariffs may come Beijing's way due to its continuing purchases of Russian hydrocarbons. Imports grew 4.1 per cent, defying economists' expectations for a 1.0 per cent fall and climbing from a 1.1 per cent rise in June, pointing to improving domestic demand as policymakers step up efforts to encourage households to boost spending. "The trade data suggests that the Southeast Asian markets play an ever more important role in US-China trade," said Xu Tianchen, senior economist at the Economist Intelligence Unit. "But it's not all about the transhipments that Trump seeks to stop, ASEAN countries are also importing raw materials and components from China before exporting finished products to the US," he added. China's exports to the US fell 21.67 per cent last month from a year earlier, the data showed, while shipments to ASEAN rose 16.59 per cent over the same period. Trump said on Tuesday the US was close to a trade deal with China and that he would meet his Chinese counterpart Xi Jinping before the end of the year if the world's two largest economies could come to an agreement. China's July trade surplus narrowed to $US98.24 billion ($A151.02 billion) from $US114.77 billion in June. Separate data from the US Commerce Department's Bureau of Economic Analysis on Tuesday showed the US trade gap with China shrank to its lowest in more than 21 years in June. Chinese government advisers are stepping up calls to make the household sector's contribution to broader economic growth a top priority at Beijing's upcoming five-year policy plan, as trade tensions and deflation threaten the outlook. And top leaders have vowed to step up regulation of aggressive price-cutting by Chinese companies that is pushing prices ever lower. But economists warn that reversing the current deflationary slump will be far more difficult than during the last round of supply-side reforms a decade ago, as the downturn now poses a broader threat to employment, which Chinese leaders have emphasised is a core component of social stability. Reaching an agreement with the United States - and with the European Union, which has accused China of producing and selling goods too cheaply - would give Chinese officials more room to advance their reform agenda. with DPA China's exports beat forecasts in July, as manufacturers made the most of a fragile tariff truce between Beijing and Washington to ship goods before tougher US duties targeting transhipments take effect. Global traders and investors are waiting to see whether the world's two largest economies can agree on a durable trade deal by August 12 or if global supply chains will again be upended by the return of import levies exceeding 100 per cent. US President Donald Trump has raised the prospect of further tariffs, including a 40 per cent duty on goods rerouted to the US via transit hubs, that took effect on Thursday, as well as a 100 per cent levy on chips and pharmaceutical products, and an additional 25 per cent tax on goods from countries that buy Russian oil. China's outbound shipments rose 7.2 per cent year-on-year in July, customs data showed on Thursday, beating a forecast 5.4 per cent increase in a Reuters poll of economists and accelerating from June's 5.8 per cent growth. China's trade war truce with the US - the world's top consumer market - ends next week, although Trump hinted further tariffs may come Beijing's way due to its continuing purchases of Russian hydrocarbons. Imports grew 4.1 per cent, defying economists' expectations for a 1.0 per cent fall and climbing from a 1.1 per cent rise in June, pointing to improving domestic demand as policymakers step up efforts to encourage households to boost spending. "The trade data suggests that the Southeast Asian markets play an ever more important role in US-China trade," said Xu Tianchen, senior economist at the Economist Intelligence Unit. "But it's not all about the transhipments that Trump seeks to stop, ASEAN countries are also importing raw materials and components from China before exporting finished products to the US," he added. China's exports to the US fell 21.67 per cent last month from a year earlier, the data showed, while shipments to ASEAN rose 16.59 per cent over the same period. Trump said on Tuesday the US was close to a trade deal with China and that he would meet his Chinese counterpart Xi Jinping before the end of the year if the world's two largest economies could come to an agreement. China's July trade surplus narrowed to $US98.24 billion ($A151.02 billion) from $US114.77 billion in June. Separate data from the US Commerce Department's Bureau of Economic Analysis on Tuesday showed the US trade gap with China shrank to its lowest in more than 21 years in June. Chinese government advisers are stepping up calls to make the household sector's contribution to broader economic growth a top priority at Beijing's upcoming five-year policy plan, as trade tensions and deflation threaten the outlook. And top leaders have vowed to step up regulation of aggressive price-cutting by Chinese companies that is pushing prices ever lower. But economists warn that reversing the current deflationary slump will be far more difficult than during the last round of supply-side reforms a decade ago, as the downturn now poses a broader threat to employment, which Chinese leaders have emphasised is a core component of social stability. Reaching an agreement with the United States - and with the European Union, which has accused China of producing and selling goods too cheaply - would give Chinese officials more room to advance their reform agenda. with DPA China's exports beat forecasts in July, as manufacturers made the most of a fragile tariff truce between Beijing and Washington to ship goods before tougher US duties targeting transhipments take effect. Global traders and investors are waiting to see whether the world's two largest economies can agree on a durable trade deal by August 12 or if global supply chains will again be upended by the return of import levies exceeding 100 per cent. US President Donald Trump has raised the prospect of further tariffs, including a 40 per cent duty on goods rerouted to the US via transit hubs, that took effect on Thursday, as well as a 100 per cent levy on chips and pharmaceutical products, and an additional 25 per cent tax on goods from countries that buy Russian oil. China's outbound shipments rose 7.2 per cent year-on-year in July, customs data showed on Thursday, beating a forecast 5.4 per cent increase in a Reuters poll of economists and accelerating from June's 5.8 per cent growth. China's trade war truce with the US - the world's top consumer market - ends next week, although Trump hinted further tariffs may come Beijing's way due to its continuing purchases of Russian hydrocarbons. Imports grew 4.1 per cent, defying economists' expectations for a 1.0 per cent fall and climbing from a 1.1 per cent rise in June, pointing to improving domestic demand as policymakers step up efforts to encourage households to boost spending. "The trade data suggests that the Southeast Asian markets play an ever more important role in US-China trade," said Xu Tianchen, senior economist at the Economist Intelligence Unit. "But it's not all about the transhipments that Trump seeks to stop, ASEAN countries are also importing raw materials and components from China before exporting finished products to the US," he added. China's exports to the US fell 21.67 per cent last month from a year earlier, the data showed, while shipments to ASEAN rose 16.59 per cent over the same period. Trump said on Tuesday the US was close to a trade deal with China and that he would meet his Chinese counterpart Xi Jinping before the end of the year if the world's two largest economies could come to an agreement. China's July trade surplus narrowed to $US98.24 billion ($A151.02 billion) from $US114.77 billion in June. Separate data from the US Commerce Department's Bureau of Economic Analysis on Tuesday showed the US trade gap with China shrank to its lowest in more than 21 years in June. Chinese government advisers are stepping up calls to make the household sector's contribution to broader economic growth a top priority at Beijing's upcoming five-year policy plan, as trade tensions and deflation threaten the outlook. And top leaders have vowed to step up regulation of aggressive price-cutting by Chinese companies that is pushing prices ever lower. But economists warn that reversing the current deflationary slump will be far more difficult than during the last round of supply-side reforms a decade ago, as the downturn now poses a broader threat to employment, which Chinese leaders have emphasised is a core component of social stability. Reaching an agreement with the United States - and with the European Union, which has accused China of producing and selling goods too cheaply - would give Chinese officials more room to advance their reform agenda. with DPA
Perth Now
2 days ago
- Business
- Perth Now
China's exports up 7.2 per cent amid US trade tensions
China's exports beat forecasts in July, as manufacturers made the most of a fragile tariff truce between Beijing and Washington to ship goods before tougher US duties targeting transhipments take effect. Global traders and investors are waiting to see whether the world's two largest economies can agree on a durable trade deal by August 12 or if global supply chains will again be upended by the return of import levies exceeding 100 per cent. US President Donald Trump has raised the prospect of further tariffs, including a 40 per cent duty on goods rerouted to the US via transit hubs, that took effect on Thursday, as well as a 100 per cent levy on chips and pharmaceutical products, and an additional 25 per cent tax on goods from countries that buy Russian oil. China's outbound shipments rose 7.2 per cent year-on-year in July, customs data showed on Thursday, beating a forecast 5.4 per cent increase in a Reuters poll of economists and accelerating from June's 5.8 per cent growth. China's trade war truce with the US - the world's top consumer market - ends next week, although Trump hinted further tariffs may come Beijing's way due to its continuing purchases of Russian hydrocarbons. Imports grew 4.1 per cent, defying economists' expectations for a 1.0 per cent fall and climbing from a 1.1 per cent rise in June, pointing to improving domestic demand as policymakers step up efforts to encourage households to boost spending. "The trade data suggests that the Southeast Asian markets play an ever more important role in US-China trade," said Xu Tianchen, senior economist at the Economist Intelligence Unit. "But it's not all about the transhipments that Trump seeks to stop, ASEAN countries are also importing raw materials and components from China before exporting finished products to the US," he added. China's exports to the US fell 21.67 per cent last month from a year earlier, the data showed, while shipments to ASEAN rose 16.59 per cent over the same period. Trump said on Tuesday the US was close to a trade deal with China and that he would meet his Chinese counterpart Xi Jinping before the end of the year if the world's two largest economies could come to an agreement. China's July trade surplus narrowed to $US98.24 billion ($A151.02 billion) from $US114.77 billion in June. Separate data from the US Commerce Department's Bureau of Economic Analysis on Tuesday showed the US trade gap with China shrank to its lowest in more than 21 years in June. Chinese government advisers are stepping up calls to make the household sector's contribution to broader economic growth a top priority at Beijing's upcoming five-year policy plan, as trade tensions and deflation threaten the outlook. And top leaders have vowed to step up regulation of aggressive price-cutting by Chinese companies that is pushing prices ever lower. But economists warn that reversing the current deflationary slump will be far more difficult than during the last round of supply-side reforms a decade ago, as the downturn now poses a broader threat to employment, which Chinese leaders have emphasised is a core component of social stability. Reaching an agreement with the United States - and with the European Union, which has accused China of producing and selling goods too cheaply - would give Chinese officials more room to advance their reform agenda. with DPA
The Diplomat
3 days ago
- Politics
- The Diplomat
Why Cambodia Is Losing the Information War With Thailand
The lack of an independent press has made it hard for the government to communicate its side of the story. In the latest conflict along the Cambodia-Thailand border, nationalism has once again spilled into cyberspace. In Cambodia, social media personalities have mobilized to challenge what they see as a global narrative tilted in Thailand's favor, arguing that international media portray Bangkok more sympathetically simply because it is more powerful, better connected, or more geopolitically popular. 'Just because Thailand is bigger and has more media coverage, Cambodia is a villain now?' asked beauty and lifestyle influencer SreyNea Nea. Pop singer and songwriter Sinora Roath echoed the sentiment in a viral video, in which she said, 'Thailand is invading Cambodia because they want more of our temples. Why are you so greedy, Thailand? Your country is bigger than us, you're way more populated, your food is all over the world, you are one of the most visited countries in Southeast Asia, and you still want more? From a country like us? Your media coverage is so big that when you told the world that we're the one invading, the world believed you.' Content creator Chris Dyna added, 'As a small country, it is very difficult for our voices to be heard. Many news outlets are only reporting from or within Thailand, with some news outlets reporting using Thai nationals, showing clear bias in their reports.' From memes to commentary, the dominant tone online is one of frustration with the focus of the international press. But the skew in global perception stems from a fact closer to home: namely, that Cambodia doesn't have a free press. Despite its history of frequent military coups, Thailand is still considered a 'flawed democracy' by the Economist Intelligence Unit and is rated 'partly free' by Freedom House. The country holds regular elections, supports an active civil society, and maintains a relatively diverse media environment, even though all of these operate under notable constraints. The press contends with self-censorship and strict legal limits, especially those imposed by the lese-majeste law, yet critical reporting persists, particularly in English-language and online outlets. For example, Bangkok, unlike Phnom Penh, hosts regional bureaus or correspondents for major international outlets like Reuters, the BBC, the Associated Press, Al Jazeera, the Financial Times, NBC, and others, many of which are associated with the Foreign Correspondents' Club of Thailand (FCCT) in central Bangkok. In Cambodia, by contrast, none of this is true. Despite still holding periodic elections, the country is now widely regarded as an authoritarian one-party state under the control of the Cambodian People's Party (CPP). Over the past decade, the government has systematically dismantled the independent media, culminating in the 2023 shutdown of Voice of Democracy (VOD), one of the last major newsrooms willing to challenge official narratives. Radio Free Asia (RFA) shuttered its Phnom Penh bureau back in 2017, citing 'unprecedented' levels of government intimidation. That same year, authorities closed more than two dozen local radio stations — many of which rebroadcast RFA programs –effectively silencing critical voices on the airwaves. The English-language Cambodia Daily, a longtime pillar of investigative reporting, was also forced to shut down after being hit with a sudden, crippling tax bill. The following year, the Phnom Penh Post was sold under pressure to government-friendly investors. By the time of the 2018 election, when the CPP won all 125 seats in the National Assembly, the country's independent press had been all but extinguished. Journalists who persist in exposing uncomfortable truths – especially around land seizures, corruption, or political abuses – often face surveillance, harassment, exile, or imprisonment. Take the case of Uon Chhin and Yeang Sothearin, two former RFA reporters arrested and charged with providing information to a foreign state, a crime that carries a sentence of up to 15 years. Then there is the case of Mech Dara, a Cambodian investigative journalist known for uncovering online scams and government corruption. In September 2024, he was charged with incitement to commit a felony or cause social disorder over posts he made online. In January, Gerald Flynn, a British environmental reporter with Mongabay, learnt that he had been blacklisted and denied re-entry to Cambodia, apparently in retaliation for his reporting on environmental crimes tied to powerful elites. So if one wonders why there is so little reporting from inside Cambodia during this war with Thailand – why no major outlet seems to be covering our side of the story – this is why. As a Cambodian, I have watched my fellow countrymen grow used to the idea that speech is dangerous, and that certain things simply are not said in public. For years, no one I knew seemed particularly concerned about press freedom. But now, suddenly, there is a nationwide outrage over 'misinformation' and 'foreign media bias,' all because of a perception that the narrative is coming out of Bangkok instead of Phnom Penh. But Cambodia will not win the PR war in the information age by handing influencers identical scripts, without third-party verification or independent journalism. We cannot ask the world to hear us while our government silences every voice that dares to speak independently. As such, this war should be a wake-up call for Cambodian leaders, alerting them to the truth-telling functions of an independent press. By silencing these voices, the Cambodian government has forfeited the credibility needed for others to believe its version of events.
The Star
3 days ago
- Business
- The Star
No clear winner in US tariff policy among Asean countries
JAKARTA: The competition landscape in South-East Asia has become clearer as the Aug 1 tariff deadline set by United States President Donald Trump passed, with most countries in the region facing the same hurdle in exporting goods to the world's largest consumer market. While there are no clear winners, Laos and Myanmar can be considered losers under a US policy that is shaking up global supply chains, as manufacturers in those countries are subject to a steep 40 per cent US import duty. Brunei Darussalam, meanwhile, got off somewhat lighter with 25 per cent, but that is still high within the region. Singapore received the lowest rate among Asean countries with a 10 per cent US import tariff, unchanged from what the Trump administration had imposed at the start of Trump's tariff barrage in April. However, export activity there involves higher operational costs, says researcher Wen Chong Cheah from the Economist Intelligence Unit (EIU). Moreover, pharmaceuticals and semiconductors, two of Singapore's main export goods, are not among the key exports of any other Asean countries, meaning the city-state was 'less able' to leverage a lower tariff to gain a competitive edge, said Cheah. 'Most of Asean is [subject to] similar [US import] tariff rates. It seems that we are back at square one. Among Indonesia's competitors in the region, none has a distinct edge in terms of export costs to the US,' he told The Jakarta Post on Monday (Aug 4). Trump announced on July 15 that Washington would impose a 19 per cent tariff on Indonesia, the second-lowest tariff in the region. The government has hailed the figure as an achievement, since it is significantly lower than the 32 per cent initially threatened. Some had hoped the deal would tip the scales in favour of Indonesia, until it was subsequently unveiled that its regional peers Malaysia, Thailand and the Philippines received the same 19-per cent rate, along with Cambodia. Exporters in manufacturing powerhouse Vietnam, meanwhile, have to contend with a marginally higher rate of 20 per cent to access the US market. That difference, however, was 'negligible' and 'insignificant' in changing the region's landscape for trade with the US, given Vietnam's capacity and efficiency, said Permata Bank chief economist Josua Pardede. He told the Post on Monday that the 1-per cent gap was too small to 'fundamentally change trade patterns', since competitiveness was not solely driven by tariffs but also by production efficiency, logistical costs, product quality and business ties. 'Vietnam still enjoys a strong market position, particularly in the electronic industry, textiles and footwear. Such a small tariff difference is possibly not big enough to directly shift trade volumes from Vietnam to other Asean countries in a meaningful way in the short-term,' said Josua. Different angles, same result Discounting Singapore, Asean's largest economies are subject to more or less the same rate, even though each played a different hand in the negotiations with Trump based on local economic characteristics and priorities. Indonesia was among the Asean countries offering 'generous concessions' to the US, Cheah said. Jakarta agreed to purchase 50 Boeing aircraft alongside US$19.5 billion worth of agricultural and energy goods and offered wide-ranging regulatory reforms as well as tariff-free access to Indonesia for most US products. Cheah highlighted the promise to rewrite local content requirements, the archipelago's long-established policy to protect local industries by forcing foreign investment onto Indonesian soil or into business ties with local producers. 'By conceding this point on local content requirements to the US, the Indonesian government has created a precedent that may make it difficult to implement a similar strategy in the future, even with other countries,' explained Cheah. Kuala Lumpur, too, has agreed to ease some nontariff barriers, such as by simplifying halal and facility registration for US imports, in addition to purchasing 30 Boeing jets and lifting some import bans, to gain the 19 per cent rate instead of 25 per cent. However, Malaysia put up a fight in the negotiation as it denied the requests for a blanket exemption and turned down a US request to remove duties on cars, tobacco and alcohol, according to The Edge Malaysia. It also disagreed to liberalise foreign equity ownership in strategic sectors, thereby maintaining existing caps to ensure sufficient space for local players. Malaysian Trade Minister Tengku Zafrul Aziz said on Friday that Kuala Lumpur had refused to compromise on those points to protect local industries. 'We have our reasons. It is a national policy to ensure we remain competitive, and as long as it continues to bring value to the country, we must continue with it,' Zafrul was quoted as saying by the South China Morning Post. With a deal expected to be enshrined in a joint statement sometime this week, Malaysia also secured tariff-free access for pharmaceuticals and semiconductors exported to the US. Washington is reportedly open to exempting imports of cocoa, rubber and palm oil from both Malaysia and Indonesia. Asked whether Jakarta could have put up more of a fight in the tariff negotiations the way Malaysia did, Cheah said 'it's difficult to say', since the export products of both countries were vastly different. 'Malaysia occupies a key node in the semiconductor supply chain, which makes it difficult for the US to find a replacement in the short term. This gives Malaysia more leverage when negotiating its trade deal,' said Cheah. 'Malaysia handles around 10 per cent of the world's microchip packaging and testing, and accounts for about 20 per cent of US semiconductor imports. Meanwhile, Indonesia's exports to the US are less critical. This includes clothing, electronics and palm oil. Hence, Indonesia has less bargaining power with the US,' he added. Bangkok agreed to eliminate import duties for more than 10,000 US items out of roughly 11,000 items in total and committed to purchasing US energy and agricultural products to get the 19 per cent rate. It also agreed to slash in half its $35-billion surplus in bilateral trade with the US, within five years. It did not yield, however, to US pressure to eliminate tariffs on sensitive products or those that would hurt domestic farmers, Bangkok Post reported on Sunday. It is unclear whether Jakarta put up a similar fight, since details on the talks have not been revealed. Officials from the Coordinating Economic Minister did not respond to requests for comment. — The Jakarta Post/ANN
