Asia needs to stay in sync with China’s slowing economy, and that means making its own re-adjustments, Indonesian Trade Minister Thomas Lembong told Borderless News Online in an exclusive interview.
China is by far the largest economy in Asia and the no. 1 trading partner to more than 120 countries in the world, he noted.
“That means that all the rest of us who are China’s trading partners also have to adjust alongside China. And even that adjustment requires a slowdown,” he said.
Comparing China’s economy just a few years ago with its current economic situation, he said: “To quote China’s prime minister Li Keqiang, three or four years ago he said China’s growth was imbalanced and unsustainable. And the downshifting in growth is necessary to facilitate the adjustments that the Chinese economy has to go through to become a healthier…kind of economy.”
Now China is working on the next step, Lembong noted, which means the rest of Asia needs to stay in sync.
“China is now upgrading to the next level. They’re finally shifting to a much deserved consumer economy, and we, China’s trading partners, have to transition with China….And at the same time tailor our offerings to what China wants, which are in many cases consumer products, lifestyle products,” he said.
When asked whether he expected China’s slowdown to slow Indonesia’s exports to China in the next year or two, he said: “The short answer is definitely yes. The deeper answer is that’s a desirable development,” he said, explaining that the downshifting in growth of the Chinese economy is needed for the Asian giant to become a more balanced economy.
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