Protectionism against low-cost Chinese imports has so far been a Western phenomenon, with Asia largely a bystander. This is about to change.
Among emerging market economies, Turkey imposed a 40% additional tariff on imports of vehicles from China, while Brazil has reinstated import taxes on EVs this year. By contrast, Asia has not erected as many trade barriers against rising shipments from China, with its policy responses more subdued so far.
At the low end of the spectrum, low-priced Chinese consumer goods are flooding into Thailand, Indonesia and South Korea, especially via e-commerce platforms. China’s overcapacity and exports are squeezing domestic producers of metals and chemicals in India, Vietnam, Thailand and South Korea.
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