According to Major Taiwanese media network Liberty Times Network (LTN), Taiwan’s Ministry of Finance recently announced that the proportion of Taiwan’s exports bound for China (including Hong Kong) in the first four months of this year dropped to 30.7 percent – the lowest level seen in 22 years. LTN reported that global supply chains are diversifying amid China’s economic weakness and tensions between China and the U.S.
For many years, Taiwan’s proportion of exports to China has hovered around 40 percent. It’s worth noting that Taiwan’s exports of semiconductors and other electronic components to China are in particularly steep decline. Taiwan’s Ministry of Finance explained that, in addition to the slow recovery of China’s internal demand, the supply chain for digital electronics and other commodities has shifted outside of China, thus reducing Taiwan’s exports to China.
From January to April of this year, Taiwan’s overall exports increased by 10.6 percent, exports to the United States increased by 64 percent, and exports to ASEAN countries increased by 25 percent. Taiwan’s proportion of exports bound for the United States reached 23.5 percent, while exports to ASEAN countries reached 19.5 percent of Taiwan’s total exports.
Encouraged by U.S. customers, Taiwanese companies have been diversifying their supply chains ever since China-US tensions began to worsen starting in 2010. They have been diversifying their production locations by moving some of their production capacity from China back to Taiwan or to other locations such as the United States, Southeast Asia, and elsewhere.
Source: LTN, May 9, 2024
https://ec.ltn.com.tw/article/breakingnews/4666984