How China Views Its Economic Relations with Indonesia

China views Indonesia as an important economic partner, particularly as a supplier of critical minerals and an emerging hub within regional supply chains. Bilateral trade and investment have expanded significantly, making China Indonesia’s largest trading partner and a leading source of investment in infrastructure, energy, and downstream industries. At the same time, Indonesia’s industrial development has become closely linked to Chinese technology, financing, and production networks, underscoring the depth of economic integration between the two countries. From Beijing’s perspective, this relationship provides a stable foundation for long-term cooperation without the need for formal alliances. While Indonesia has expressed an interest in diversifying its economic partnerships, the future direction of the relationship will depend on Jakarta’s efforts to enhance technology transfer, broaden investment sources, and maintain a balanced and mutually beneficial collaboration.

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