The World Is Beginning to Leave America and Move Closer to China: Where Is Indonesia Heading?
Jakarta, CNBC Indonesia - Over the past two decades, the map of global trade has changed drastically. If at the start of the 2000s the United States was still the centre of global trade, that position has now been displaced by China. The country that used to be merely the world’s factory has now grown into a major trading partner for most countries in Asia, Africa, South America, and the Middle East. This shift shows that global economic influence is no longer concentrated in the West.
From Being Left Behind to Becoming Number One
In 2000, total United States trade reached around US$2 trillion, more than four times China’s trade which was US$474 billion. At that time, only a handful of countries made China a major trading partner, such as Vietnam, North Korea, Myanmar, and Iran. Conversely, the U.S. trade influence dominated almost the entire world.
However, in the last 24 years, China’s trade grew extremely rapidly. China’s trade value jumped about 1,200% since 2000, with an average annual growth of about 11.3%. Meanwhile U.S. trade grew 167% at an average of around 4.2% per year. China even officially overtook the U.S. as the country with the largest total trade since 2012.
In 2024, China’s total trade reached around US$6.2 trillion, higher than the U.S., which was in the vicinity of US$5.3 trillion.
Meanwhile, Indonesia has undergone a significant shift in its trade direction over the last two decades. In 2000, Indonesia traded more with the United States. But by 2025, China became Indonesia’s main trading partner as coal, nickel, iron and steel trade rose and investments and supply chain components from China entered. This shift shows that the centre of gravity of Indonesia’s trade is increasingly moving towards Asia, particularly China, which has become both a market for exports and a major source of imports for various sectors of national industry.
Asia to Africa Closer to China Now
Citing Visual Capitalist, China is now the dominant trading partner for many countries in Asia, Eastern Europe, the Middle East, Oceania, Latin America, and Africa. Developing nations are starting to bolster their economic relations with Beijing, primarily through commodity trade and manufacturing.
In contrast, U.S. trade influence is more concentrated in North America and parts of Western Europe.
China’s Strategy with Raw Material Imports, Finished Goods Exports
China’s strength comes from its economic model, highly integrated with global supply chains. China imports energy, minerals, and agricultural products from many developing countries, then exports high value-added manufactured products back to the global market. This strategy makes many countries increasingly dependent on Chinese demand and markets.
In addition, infrastructure projects and trade routes such as the Belt and Road Initiative reinforce China’s economic influence in various regions of the world.
Tariff Wars Speeding Up the Shift
Amid rising trade tensions between the U.S. and China, many countries are diversifying their trade relationships. The high tariffs imposed by the Trump administration on Chinese goods prompted retaliation from Beijing and sparked global discussion about restructuring global supply chains. Nevertheless, data show that China’s position in global trade remains very strong. Many countries still regard China as their main market or largest import source.