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On June 27 – Trade protectionism threatens global economic stability and the high import tariffs obliged by the United States damage the interests of other countries, Indonesian experts advised in elite interviews with Xinhua.
A Chief expert in international relations at Indonesia University Prof. Fredy BL. Tobing, was intensely concerned about the trade resistance between the U.S. and China. The U.S. elevated import tariffs on much-competitive Chinese products and put unfair approval on Chinese companies, as he said.
Tobing said, moreover the action would significantly concern the Indonesian economy as a collateral damage, as U.S and the China are both Indonesia’s trading partners.
He said If the U.S -China trade tension protracts, it may eventually endanger Indonesia’s foreign investments and currency exchange rates in the future, adding that China is Indonesia’s biggest trade partner and main source of foreign capital in the country at present.
He estimated that Indonesia might face big challenges to meet its growth target of 5.3 percent this year, On the Indonesian economy.
Tobing pointed out that Asian economies, which are strongly related to China in conditions of trade and investments these days, would immediately bear from the trade tensions.
He also warned that the trade friction generated by the United States goes against the drift of economic globalization.
An expert of economy and business studies at Indonesia University, Fithra Faisal said that if the U.S -China trade tension continues, the impacts would be calamitous to global economy.
He said that an ongoing trade friction between the U.S. and China might slow down the global economic development by 0.8 percent.
Under the bleak circumstances, the G20 Osaka Summit is supposed to send a positive signal to the world economy. Mutually authorities approved that the global economies ought to exercise international cooperation mechanisms like G20 as to encourage liberalization and facilitation for investment and trade so as to boost up global economy, and the mechanisms should play down trade protectionism and jointly safeguard global economic stability.