Southeast Asia (Page 38)

After the United States finalized its tariff increases on Chinese goods, including electric vehicles ( EVs ), batteries, solar panels, metals, and medical tools, Beijing has pledged to take measures to protect Chinese firms ‘ interests. &nbsp,

Following Section 301 tariff investigations, the Office of the United States Trade Representative ( USTR ) announced on September 13 that it will continue with its previously proposed tariff increases on imports from China. &nbsp,

From September 27 this month, the US will establish a 100 % tax on EVs and a 50 % tax on solar cell, syringes and needles imported from China. It will also impose a 25 % tariff on China’s facemasks, battery parts ( non-lithium-ion batteries ) and lithium-ion EV batteries, critical minerals, ship-to-shore cranes and steel and aluminum products.

The US will start imposing a 50 % tax on Chinese-made health gloves and electronics starting in 2025. From the beginning of 2026, the US will impose a 25 % tariff on China’s lithium-ion non-EV batteries, natural graphite and permanent magnets, a 50 % tariff on facemasks and also a 100 % tariff on medical gloves. &nbsp,

These tax increases, which cover imports worth US$ 18 billion from China, have mostly been unchanged from those that the Biden administration announced on May 14.

The USTR stated on September 13 that it made its decision after taking into account public feedback and the recommendations of the Interagency Section 301 commission and other acceptable advisory boards. &nbsp,

China has consistently made significant representations to the US side regarding Area 301 tariffs, and the WTO has already determined that these taxes are against the rules, according to a spokesperson for China’s Ministry of Commerce. ” Instead of addressing this, the US has further increased tariffs on Chinese products, compounding its mistakes” .&nbsp,

The US Section 301 tariff increase, according to the spokesperson, is standard unilateralism and protectionism that drives up the costs of US imports while finally being borne by US businesses and consumers.

The Chinese Commerce Ministry released its 2024 Report on US compliance with the World Trade Organization ( WTO ) on September 12. The statement expressed grave concern about the US’s alleged misuse of Section 301 to impose tariffs on Chinese goods, claiming that the US “disrupts world business and provide chains”.

Additionally, it criticized the US for defaming the multilateral trading system, engaging in punitive trade bullying, imposing double standards on professional policies, and stifling the global commercial and supply chains by politicizating and using economic and trade issues by using a “tariff baton” under the guise of “de-risking.”

According to the China Council for the Promotion of International Trade (CCPIT ), Section 301 tariffs violate WTO guidelines and severely impair the trust of the relevant Chinese and US industries in long-term, stable cooperation.

Tech income

The Office of the USTR’s latest announcement said Chinese semiconductors that will be subject to a 50 % import tariff include diodes, transistors, photosensitive semiconductors, processors and controllers, integrated circuits ( memories, amplifiers and others ) and parts of integrated circuits and microassemblies. &nbsp,

But, CITIC Securities said the US price hikes will not have a big impact on China’s semiconductor industry. It said China’s export of semiconductors to the US amounted to 22.7 billion yuan ( US$ 3.2 billion ), or only about 1.65 % of China’s total exports of semiconductors of 13.78 trillion yuan in 2023. &nbsp,

Another analysts claimed that Taiwanese thermal product manufacturers are more affected by overcapacity than US tariff increases.

There has been hardly any immediate import of solar panels from China to the US in the past 12 years, according to Lu Jinbiao, deputy director of the expert council of the Beijing branch of the China Nonferrous Metals Industry Association, who spoke to Yicai.com.

He claimed that since the US began an anti-dumping exploration into Chinese renewable batteries and units in October 2012, Chinese manufacturers have rerouted their production traces to Southeast Asian nations like Cambodia, Thailand, Vietnam, and Laos to avoid additional US tariffs.

In order to provide US providers more time to build their domestic production capacity, the Biden administration extended a tax deduction for renewable product producers in the four Southeast Asian nations by two years in June 2022. &nbsp,

After the deduction expired on June 6 of this year, US manufacturers of solar materials from the four nations are now required to pay an additional 14.25 % work. &nbsp,

Lu said some manufacturers of Taiwanese renewable energy might choose to relocate to the US to prevent additional tariffs while others might be in Southeast Asia. He claimed in an interview with Caixinglobal.com that the bigger issue in China’s thermal product sector is a price war brought on by overcapacity and fragile global demand. &nbsp,

He claimed that some Chinese thermal product manufacturers have since lost money as a result of the decline in silicon prices from 300,000 yuan per lot two years ago. He claimed that since the third quarter of last year, costs of solar chips, cell, and components have fallen by more than 50 %. &nbsp,

Longi Green Energy Technology, China’s thermal chip maker, reported a net loss of 5.2 billion yuan in the six month ended June 30 this year, compared with a net income of 9.2 billion yuan a month earlier. &nbsp,

A solar body manufacturer, TCL Zhonghuan Renewable Energy Technology, recorded a net loss of 3 billion yuan in the first quarter, compared to a 4.5 billion yuan earnings in the same time of last year. &nbsp,

Read: Germany invests more in foreign companies than China.

Following Jeff Pao on X: &nbsp, @jeffpao3

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Youth in the Asia-Pacific area are extremely concerned about the perilous work situation, with a growing number of young people finding themselves in temporary work without social security or long-term deals.

In Southeast Asia and the Pacific, over 28 % of children were working temporarily without financial security and social privileges in the document Global Employment Trends for Youth 2024 from the International Labor Organization.

This circumstance not just undermines the financial stability of people, but it also has significant effects on the state’s leads for long-term economic growth.

International changes, outlined in the ILO’s report, show that temporary jobs in the region has been rising since the early 2000s. Although adaptable, these jobs often provide long-term agreements, leaving younger workers without access to important benefits like medical and pensions.

In places like Indonesia, the Philippines, and Vietnam, the gig economy has more exacerbated the problem by creating accommodating but often unpredictable work. More than 44 % of Indonesian children are reportedly employed in the informal sector, frequently without arrangements, which makes it difficult for them to obtain social security or monetary stability.

The pressures that children are subject to also increase as a result of social expectations. In some Asian countries, steady employment is seen as a symbol of personal and social victory. This cognitive dissonance, but, causes emotional stress for some younger people who can only secure vulnerable jobs.

For instance, in South Korea and Japan, the societal pressure to find permanent jobs has increased in the number of mental health issues, including a noteworthy rise in youth suicides.

Technology, which was first seen as a gateway to new job prospects, has also played a part in expanding the uncertainty of these tasks.

Although the gig economy has opened up new employment opportunities for young people, particularly in the fields of logistics and transportation ( like Gojek and Grab drivers ), these positions come with significant financial hazard because of the absence of social security. Many of these employees rely on fluctuating desire, which results in unexpected income.

However, systems also holds the potential for revolutionary solutions. To improve transparency and offer better protection for gig workers, blockchain technology and intelligent contracts are being looked into.

These websites can make sure that employees are given timely payments and have access to fundamental social security benefits. In order to incorporate these safeguards into their job market frameworks, nations like Singapore are looking into collaborations with technology companies.

Precarious employment even poses obstacles to social mobility. Youth who are confined to temporary or casual jobs frequently lack access to training or advancement opportunities, which makes it challenging for them to change into more stable and well-paying positions.

This exacerbates intergenerational inequality, specifically for those in lower-income organizations. In order to address this, empowering and mentoring initiatives must be prioritized to enable youth to transition to industries like alternative energy and information technology with better job security.

Governments in the Asia-Pacific area want to improve interpersonal protections for younger workers, including expanding access to healthcare and pension plans for those in the informal sector, at the coverage level.

The establishment of more stable employment in the conventional business might be aided by tax opportunities for companies that offer long-term contracts to younger workers. Also, educational and vocational initiatives need to be more in tune with demands coming from the labor market in the future.

With a more integrated approach—combining open plan, technological innovation, and cultural change—the Asia-Pacific area can create a safer and more diverse labour market for children, paving the way for sustainable economic growth in the long term.

Setyo Budiantoro is a fellow at the Massachusetts Institute of Technology ( MIT ), Nexus Strategist The Prakarsa, and IDEAS Global Program Fellow.

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