BEIJING — Information present that Taiwan relies upon extra on China for trade than it does on the U.S., even when U.S. Home Speaker Nancy Pelosi threw her weight behind Taiwan this week in a high-profile go to.
Taiwan got here beneath navy and financial stress from Beijing this week, after the democratically self-ruled island allowed the go to of Pelosi — the highest-ranking U.S. official to set foot on Taiwan in 25 years.
The go to got here regardless of warnings from China, which considers Taiwan a part of its territory and maintains the island should not have any proper to conduct international relations. The U.S. acknowledges Beijing as the sole authorized authorities of China, whereas sustaining unofficial relations with Taiwan.
Nonetheless, Taiwan’s enterprise and financial ties with mainland China and Hong Kong have grown so giant that the area is by far the island’s largest buying and selling accomplice.
Many giant Taiwanese firms in high-tech industries such the world’s greatest chipmaker — Taiwan Semiconductor Manufacturing Co., or TSMC. — function factories in mainland China.
Final yr, mainland China and Hong Kong accounted for 42% of Taiwan’s exports, whereas the U.S. had a 15% share, in accordance with official Taiwan knowledge accessed via Wind Data.
In all, Taiwan exported $188.91 billion in items to mainland China and Hong Kong in 2021. Extra than half had been digital components, adopted by optical tools, in accordance with Taiwan’s Ministry of Finance.
Taiwan’s exports to Southeast Asia had been even higher than these to the U.S. — at $70.25 billion to the area, versus $65.7 billion to the U.S., the knowledge confirmed.
As a supply of Taiwan’s imports, mainland China and Hong Kong once more ranked first with a 22% share. The U.S. solely had a ten% share, rating behind Japan, Europe and Southeast Asia.
Rising trade with mainland China
Lately, Taiwan has purchased an growing quantity of merchandise from mainland China, and vice versa.
Over the final 5 years, Taiwan’s imports from mainland China have surged by about 87% versus 44% progress in imports from the U.S.
Taiwan’s exports to mainland China grew by 71% between 2016 and 2021. However exports to the U.S. practically doubled, rising by 97%.