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"Business in Asia: The next Great Wall"
“Buy local” campaigns raise protectionist barriers in Asia
POLITICIANS in Europe and America have been especially vocal about the dangers of protectionism in recent months. Even so, many Asian firms feel that barriers are gradually rising against them. Tighter environmental laws, “place of origin” rules and other new regulations are being introduced in America and Europe, they complain. The costs of complying with these regulations make Asian rice, furniture and toys less competitive. As Asian exports continue to collapse, the region is responding in kind.
This week Vietnam increased import tariffs on dairy products, after raising duties on paper last month. India has upped tariffs on some types of steel. Malaysia’s prime minister has issued a plea on his website to “buy local products in large quantities”. The Indonesian government will introduce regulations this month to penalise 4m officials if they do not buy locally produced food, drinks, shoes, clothes, music and films. New rules which favour local steelmakers are also likely to cut Indonesian steel imports to 1.5m tonnes this year, down from 9m tonnes in 2008. Such measures are not protectionist, the Indonesian trade minister claims, but are merely “branding campaigns”. ...
The Economist: China's economy
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