Indonesian Minister Analyzes China's Competitive Advantage in Global Trade

Political Support Drives Chinese Products' Success

Maman Abdurrahman, Indonesia's Minister for UMKM, addressed the rapid growth of Chinese products in the global market during the Kadin Rapimnas 2025 event held at The Park Hyatt Hotel Jakarta. The minister emphasized that the success of Chinese products, characterized by their competitive pricing and rapid development, is deeply rooted in the strong political backing they receive from both the government and business elites.

Complex Factors Behind China's Dominance

According to Maman, the reasons behind China's dominance in producing affordable goods are multifaceted. He stated that the complexity involves not just economic factors but also significant political will and extensive support from political and business circles. This comprehensive support ecosystem enables Chinese businesses to operate with certain advantages that their counterparts in other countries may not have.

Global Trade Context and Protectionist Measures

The minister drew parallels with global trade practices, referencing the protectionist policies implemented by former US President Donald Trump. Maman noted that such measures were taken to protect domestic industries through import tariffs on various countries. This comparison highlights the different approaches countries take to support their domestic markets and industries.

Implications for Indonesian Businesses

The observations made by the minister have significant implications for Indonesian businesses, particularly in the UMKM sector. Understanding the role of political and economic support in China's success could inform Indonesia's strategies for enhancing its own business environment. The challenge lies in balancing support for local businesses while navigating the complexities of global trade dynamics.