Opinion | Trade with Asean can mitigate irresponsible tariffs from the West

With the halls of power in Washington and Brussels rumbling with regular talk of higher trade tariffs and allegations of Chinese dumping, it would be fair to acknowledge globalisation is well and truly no longer de rigueur.

For all its perceived faults, it does not take an economist to see that freer trade benefits consumers globally by providing quality goods at affordable prices, while tariff barriers and protectionism tend to do the opposite.

It is therefore good to see progress is being made to strengthen a regional pact between China and the Association of Southeast Asian Nations (Asean). The 10-nation grouping was “actively working” with China to finish talks on upgrading their 2009 deal, Asean Secretary General Kao Him Hourn told a joint leadership meeting in Beijing.

China was working for early conclusion of the new pact, Vice-Premier Ding Xuexiang said. Talks on the deal, known as upgrade 3.0, began in November 2022, and the goal is to conclude an agreement this year.

Trade relations have been fraught between China and the United States and European Union. Washington has barred sales of high-end semiconductors to China and, like Brussels, has slapped tariffs on Chinese electric vehicles, complained it is dumping lithium-ion batteries and solar panels, and pushed Beijing from select global supply chains.

Caught in the crossfire, Chinese businesses have sought markets in and resources from non-Western countries – to Asean’s benefit. E-commerce exports to Asean from China started to boom during the pandemic, and Asean countries have begun strengthening supply chains in China.

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