China Business Strategy
The main fear of post implementation of the Free Trade Agreement between ASEAN and China or the ACFTA is getting a flood of Chinese goods to Indonesia. Almost all eyes watched the real world, even without the effect of ACFTA, Chinese products have spread to the remote rural areas.
One country to another are connected with the connecting lines, such as the ASEAN-China. It is conceivable, when Indonesia refused ACFTA, Indonesia will also lose the connecting lines with ASEAN.
Think again, defeat Indonesia who “surrendered” before the match will certainly be an opportunity for other countries invaded China as potential markets. In plain sight in the ASEAN countries, China’s population reaching 1.3 billion people is a lucrative market.
Not only against China, Indonesia product that will go into ASEAN would be not competitive because of import duties Indonesian products to these countries will apply the normal tariff is much higher or in the category most favored nation (MFN). A hard choice, but must be faced. ACFTA, the signing of the ACFTA agreement was signed in November 2004. Since then, imposition of tariffs for products that are agreed upon starting to agree reduced. Peak, January 1, 2010, import duties of products determined to be zero percent.
Industry seemed on fire. Ten years pioneered ACFTA, China directly strengthen leadership in the government despite being in uproar Not just socializing, but they also develop and implement the road map as well as the escort industry.
“Instead, we even like panic. This occurs because the government and the business sector there is no power to unite, “said Chief Executive Officer (CEO) Group Garuda food Sudhamek AWS in Jakarta, late last March. Durability export
In the midst of diplomatic relations over 60 years of Indonesia and China, the trade balance in the last 10 years is indeed a major concern. Central Bureau of Statistics (BPS) show, during the years 1999 to 2007 Indonesia recorded a trade surplus with China, but the years 2008-2009 (January-October) in deficit.
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