Taiwan’s exports to China increase

Taiwan's exports to China increase

According to data, in 2020, Taiwan’s exports to China (including Hong Kong) reached US$136.74 billion, accounting for 43.8% of Taiwan’s total export value, an increase of 14% from the approximately US$95.1 billion in the same period in 2019.

The largest export volume was still “electronic components”, which increased by about 20% to US$20.76 billion, especially concentrated on integrated circuits, such as wafers (chips) products, and so on. Immediately afterward, “Information Communication and Audiovisual Products” increased by US$5.84 billion (an increase of 15.1%), followed by optical equipment, which increased by US$250 million (an increase of 2.4%).

Xu Zunci, an associate researcher at the Taiwanese tank “China Economic Research Institute”, analyzed the BBC’s Chinese language. In 2020, Taiwan’s exports to China have grown rapidly. One of the reasons for the increase in the proportion is that Taiwan’s exports to the mainland declined by 4.1% in 2019, so the base period is low; An important reason is that “the U.S.-China trade war and the tight global semiconductor production capacity. Since 2019, mainland China has been hoarding and expanding the purchase of semiconductors, which has led to a surge in demand for semiconductors exported to Taiwan.”

Many analyses have pointed out that, in the context of the US-China trade war, because mainland Chinese companies want to end their dependence on the US technology and replace parts that are no longer provided due to US sanctions, they have begun to switch to Taiwan to buy products. Therefore, Taiwan has become a Chinese company. The export of high-tech products has been growing in 2020.

For example, according to the export data released by Taiwan’s state media Central News Agency in September 2020, Taiwan’s rush shipments to China’s two major companies, namely Huawei and China’s largest chip manufacturer SMIC, have seen an increase in their products.

Taiwan’s semiconductor leader “TSMC” contributed 22% of its revenue from July to September last year from mainland China. According to the US media Bloomberg, due to the backward research and development of the global chip manufacturer Intel’s 7-nanometer process, TSMC’s stock price has continued to rise, with a market value of US$410 billion, squeezing into the world’s top 10 market capitalization companies.