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.
Kiatanantha: Exporters may reroute goods via SE Asia
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.
Mr Kiatanantha cited a Thai customs official who wrote on his social media that Thailand is seeing increased parcel-level imports of electronics, consumer goods and "unbranded" merchandise from China since the tariff announcement.
"It isn't only a dilemma of regulation but a disruption to domestic producers, consumers and the integrity of regional digital economies," Mr Kiatanantha said.
"Small and medium enterprises throughout Southeast Asia, which have already been fighting for business against imported goods, now consider the possibility of their markets being swamped with artificially cheap products.
"This could endanger years of work to create sustainable local industries and digital entrepreneurship ecosystems," he said.
Mr Kiatanantha suggested that Asean governments should modernise trade surveillance systems by integrating real-time customs tracking into e-commerce logistics.
Countries like Singapore and Malaysia have already implemented such systems, but regional consistency remains a challenge, he said.
He said there are also calls for stricter regulations requiring online platforms to disclose product origins, certifications, and cross-border seller registration -- similar to policies recently rolled out in Vietnam.
"Asean needs a regional approach to monitor abnormal trade flows and detect irregular patterns early," he said, adding that automated risk alert systems connected to the Asean Single Window would be a critical tool.
Mr Kiatanantha said that even with strong preventive systems, enforcement regarding the issue remains a key issue.
Authorities must be empowered to conduct swift investigations -- both in warehouses and on digital storefronts -- where fake documents or unsafe goods are suspected.
Platforms could also be mandated to take down prohibited listings within hours instead of days, boosting consumer safety and trust across the region, he said.
Should diverted imports significantly disrupt domestic industries, Asean members may invoke World Trade Organization (WTO) safeguard measures, such as temporary import duties or quotas -- steps previously used by Indonesia to protect its textile sector.
He said that Asean should establish a joint Digital Trade Surveillance Taskforce comprising customs authorities, digital economy agencies, consumer protection units, and private sector representatives. The task force would be responsible for sharing intelligence, coordinating enforcement, and setting early-warning protocols.
Meanwhile, negotiators are being urged to include anti-trade diversion provisions in the forthcoming Asean Digital Economy Framework Agreement (DEFA), which is expected to shape the region's digital trade rules for years to come.
Emerging technologies such as blockchain and artificial intelligence are also being touted as tools to enhance transparency and detect anomalies in supply chains. Pilot programmes are already underway in some Asean countries, but broader adoption is needed.
E-commerce platforms are expected to play a larger role in compliance by building seller databases, verifying product authenticity, and participating in joint risk management.
Consumer education campaigns, such as "Know Before You Buy", could also empower the public to identify questionable goods and report suspicious activity, strengthening frontline protection.
Mr Kiatanantha warned that without prompt action, Southeast Asia could face a surge of trade manipulation that undermines domestic industries, weakens consumer trust, and damages Asean's reputation on the global stage.
"This is more than just an economic issue -- it's about Asean's position in a world where digital trade and geopolitics are increasingly intertwined," he said. "We need infrastructure, policy coordination, and smart technology investment to ensure we're not just reacting to global trade shifts -- but actively shaping them."
