Taiwan’s Exports Surge to US Amid Decreasing Chinese Influence
In the first four months of 2024, Taiwan’s export landscape has undergone significant changes. While exports to China are declining, Taiwanese businesses are shifting away from China, leading to a rise in exports to the United States.
According to Taiwan’s government statistics, exports to the United States reached $10.16 billion in April, marking an 81.6 percent year-on-year increase. This surge was driven by exports of information, communication, audiovisual products, and electronic components, benefiting from AI applications and the U.S. government’s efforts to bring chip manufacturing back to the U.S.
Conversely, exports to China and Hong Kong decreased by 11.3 percent year-on-year in April, attributed to slow China’s domestic demand recovery, global supply chain reorganization, and reduced demand for Taiwanese electronic components due to U.S.-imposed bans.
Overall, Taiwan’s export landscape has shifted, with exports to China and Hong Kong accounting for only 30.7 percent of total exports, the lowest in 22 years. In contrast, exports to the United States reached 23.5 percent, the highest in 24 years, while exports to ASEAN countries accounted for 19.5 percent, also a record high.
This trend aligns with recent years, showcasing a continuous shift in Taiwan’s export destinations. Taiwanese businesses are increasingly moving away from China due to economic downturns and geopolitical tensions, choosing to diversify their production risks by investing in the U.S., Europe, Japan, and other countries specified in the New Southbound Policy.
Amid these changes, Taiwan’s economy has remained resilient, with its stock market hitting new highs. The transition away from China is evident in the decisions made by Taiwanese companies, such as KYEC exiting the Chinese semiconductor packaging and testing market and focusing on Taiwan’s semiconductor supply chain for future growth.
