Vietnam, Indonesia and other countries in south-east Asia are caught in the crossfire of US President Donald Trump’s trade war with Beijing, with the region coming under mounting pressure to clamp down on the rerouting of Chinese goods as it heads into tariff negotiations with the US.
Chinese exports to the region jumped more than 20 per cent last month, offsetting a plunge in US-China trade and underscoring accusations from the Trump administration that countries in south-east Asia were helping Chinese manufacturers avoid punitive tariffs.
Officials and trade experts said this practice, known as trans-shipment, has become a critical issue in negotiations with the US, with the Trump administration demanding countries in the region crack down to secure relief from some of the highest levies imposed on America’s trading partners.