The debate on protectionism is heating up in Asia. Protectionism, a concept largely associated with the West, is now influencing policy discussions in Asia. China's overcapacity production is at the crux of this debate.

In the past, protectionism against low-priced Chinese goods was a Western phenomenon, with Asian countries sitting on the sidelines. However, the global protectionist movement has recently grown as the United States and Europe have taken action to address trade imbalances by imposing tariffs on Chinese goods. Latin America has also imposed sanctions on Chinese steel products, and Asia has been caught in the crossfire.

Asian countries must now make a difficult decision. The choice is clear: protectionism or free trade? Experts agree that protecting domestic industries is crucial. Overcapacity in China is threatening local manufacturing ecosystems, and the United States and Europe are limiting the outflow of Chinese goods. This means that Chinese production will flow into Asian markets. China must take protectionist measures to protect its industries and stabilize jobs.

Lian Lei, a research fellow at the Singapore Institute of International Studies (SICR), asserted that China's low-cost products will undoubtedly cause significant issues in Asian markets. He stated that it is imperative to adjust the economic structure and stabilize the labor market through increased protectionism. However, experts emphasize that protectionism is only a temporary solution. In the long run, it is essential to achieve qualitative growth of industries through technological innovation and enhanced competitiveness. Imports must be controlled to prevent negative impacts on domestic companies and jobs. Policymakers in Asia must carefully consider these factors.

China's overcapacity remains the elephant in the room that Asian countries must address in their trade policies. Finding a balance between protectionism and free trade is crucial to allow economies to restructure while protecting domestic industries and jobs. Policymakers in Asia must walk a tightrope between protectionism and free trade. They need to bite the bullet and make tough decisions. By imposing certain protective measures, Asian countries hope to level the playing field for their domestic industries against the influx of low-cost Chinese goods.

Idioms about the topic 

1. Caught in the crossfire

   • Meaning: To be involved in an unwanted or difficult situation because of the actions of others.
   • Example: Asian countries were caught in the crossfire as Western nations imposed tariffs on Chinese goods, affecting the regional trade balance.

2. Walk a tightrope

   • Meaning: To navigate a risky situation very carefully.
   • Example: Policymakers in Asia must walk a tightrope between protectionism and free trade to ensure the stability of their economies.

3. Elephant in the room

   • Meaning: An obvious problem or issue that people avoid discussing.
   • Example: China's overcapacity remains the elephant in the room that Asian countries must address in their trade policies.

4. Bite the bullet

   • Meaning: To face a difficult situation with courage and determination.
   • Example: Asian nations need to bite the bullet and make tough decisions about how to handle Chinese overcapacity in their markets.

5. Level the playing field

   • Meaning: To create a fair situation where everyone has an equal chance of succeeding.
   • Example: By imposing certain protective measures, Asian countries hope to level the playing field for their domestic industries against the influx of low-cost Chinese goods.

Korea IT Times/Editorial Team 다른기사 보기