Jakarta, CNBC Indonesia - Over the past two decades, the map of\nglobal trade has changed drastically. If at the start of the 2000s the\nUnited States was still the centre of global trade, that position has\nnow been displaced by China. The country that used to be merely the\nworld\u2019s factory has now grown into a major trading partner for most\ncountries in Asia, Africa, South America, and the Middle East. This\nshift shows that global economic influence is no longer concentrated in\nthe West.<\/p>\n
From Being Left Behind to Becoming Number One<\/p>\n
In 2000, total United States trade reached around US$2 trillion, more\nthan four times China\u2019s trade which was US$474 billion. At that time,\nonly a handful of countries made China a major trading partner, such as\nVietnam, North Korea, Myanmar, and Iran. Conversely, the U.S. trade\ninfluence dominated almost the entire world.<\/p>\n
However, in the last 24 years, China\u2019s trade grew extremely rapidly.\nChina\u2019s trade value jumped about 1,200% since 2000, with an average\nannual growth of about 11.3%. Meanwhile U.S. trade grew 167% at an\naverage of around 4.2% per year. China even officially overtook the U.S.\nas the country with the largest total trade since 2012.<\/p>\n
In 2024, China\u2019s total trade reached around US$6.2 trillion, higher\nthan the U.S., which was in the vicinity of US$5.3 trillion.<\/p>\n
Meanwhile, Indonesia has undergone a significant shift in its trade\ndirection over the last two decades. In 2000, Indonesia traded more with\nthe United States. But by 2025, China became Indonesia\u2019s main trading\npartner as coal, nickel, iron and steel trade rose and investments and\nsupply chain components from China entered. This shift shows that the\ncentre of gravity of Indonesia\u2019s trade is increasingly moving towards\nAsia, particularly China, which has become both a market for exports and\na major source of imports for various sectors of national industry.<\/p>\n
Asia to Africa Closer to China Now<\/p>\n
Citing Visual Capitalist, China is now the dominant trading partner\nfor many countries in Asia, Eastern Europe, the Middle East, Oceania,\nLatin America, and Africa. Developing nations are starting to bolster\ntheir economic relations with Beijing, primarily through commodity trade\nand manufacturing.<\/p>\n
In contrast, U.S. trade influence is more concentrated in North\nAmerica and parts of Western Europe.<\/p>\n
China\u2019s Strategy with Raw Material Imports, Finished Goods\nExports<\/p>\n
China\u2019s strength comes from its economic model, highly integrated\nwith global supply chains. China imports energy, minerals, and\nagricultural products from many developing countries, then exports high\nvalue-added manufactured products back to the global market. This\nstrategy makes many countries increasingly dependent on Chinese demand\nand markets.<\/p>\n
In addition, infrastructure projects and trade routes such as the\nBelt and Road Initiative reinforce China\u2019s economic influence in various\nregions of the world.<\/p>\n
Tariff Wars Speeding Up the Shift<\/p>\n
Amid rising trade tensions between the U.S. and China, many countries\nare diversifying their trade relationships. The high tariffs imposed by\nthe Trump administration on Chinese goods prompted retaliation from\nBeijing and sparked global discussion about restructuring global supply\nchains. Nevertheless, data show that China\u2019s position in global trade\nremains very strong. Many countries still regard China as their main\nmarket or largest import source.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/the-world-is-beginning-to-leave-america-and-move-closer-to-china-where-is-indonesia-heading-1779542720", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }