E-commerce as trade war front

Digital platforms in SE Asia could be new battleground for China, writes Chairith Yonpiam

- Chairith Yonpiam

As the trade war between the United States and China intensifies, Southeast Asia's e-commerce platforms are emerging as a new battleground in the global economic conflict, an expert warned.

Following US President Donald Trump's decision to raise tariffs on certain Chinese goods to as high as 125%, concerns are growing that Asean countries could become a loophole for diverted Chinese exports — particularly through digital trade.

According to Asst Prof Kiatanantha Lounkaew, an economist at Thammasat University, the trade hostilities could lead Chinese exporters to reroute their goods through Southeast Asia via platforms such as Shopee, Lazada, Tokopedia, and TikTok Shop.

“These platforms were once hailed for accelerating Asean’s digital transformation,’ said Mr Kiatanantha. “But now, they are being watched closely for potentially enabling tariff evasion and flooding local markets with suspiciously cheap goods”

Countries such as Thailand, Vietnam, Malaysia, Indonesia, and the Philippines — none of which currently face the same tariff levels imposed on China — are particularly vulnerable to becoming trade diversion hubs.

While the influx of goods could boost e-commerce activity, local small and medium-sized enterprises (SMEs) are facing growing pressure as they struggle to compete with imported products that may not meet safety or quality standards.