TRADE DIPLOMACY China Market Business Strategy

The main fear pascaimplementasi Free Trade Agreement between ASEAN and China or ACFTA is the flood of Chinese goods to Indonesia. Almost all eyes watched the real world, even without force ACFTA, Chinese products have spread to remote rural areas.

One country to another is connected with connecting lines, such as the ASEAN-China. It is conceivable, if Indonesia refused ACFTA, Indonesia would also lose the connecting lines with ASEAN.

Think again, the defeat of Indonesia who "surrendered" without a fight would certainly be an opportunity for other countries invaded China as a potential market. In front of the eyes of the countries in ASEAN, China's population reaches 1.3 billion people is a lucrative market.

Not only against the Chinese, Indonesian products that will enter into ASEAN will not be competitive because of import duties of Indonesian products to countries that will apply normal rates are much higher or longer categorized as Most Favoured Nation (MFN). A hard choice, but must be faced.

Pascaperundingan ACFTA, the signing of the agreement was signed ACFTA in November 2004. Since then, the imposition of tariffs for products that are agreed upon starting to agree reduced. Peak, January 1, 2010, import duties of products determined to be zero percent.

Industrial fire beard though. Ten years ACFTA initiated, direct Chinese government to strengthen leadership within Ingar despite perpolitikannya noise. Not just socializing, but they also prepare and implement and oversee the industry roadmap.

"Conversely, we even like fire beard. This occurs because the government and the business sector there is no power to unite, "said Chief Executive Officer (CEO) Group Garudafood Sudhamek AWS in Jakarta, late last March.

Durability export

In the midst of diplomatic relations over 60 years of Indonesia and China, the trade balance in the last 10 years is indeed a major concern. Central Bureau of Statistics (BPS) showed, during the years 1999 to 2007 Indonesia recorded a trade surplus with China, but the years 2008-2009 (January-October) in deficit.

Indonesian exports to China tend to increase until 2008, but the crisis that shook cause our exports to weaken resistance. While imports from China to Indonesia is unshakable, even tended to increase.