The Ministry of Economic Affairs (MOEA) issued an article on the 8th to clarify the theory that former KMT President Ma Ying-jeou emphasized “Taiwan’s dependence on China”. Photo: taken from the Ministry of Economic Affairs Facebook page
The Ministry of Economic Affairs clarified on the 8th that Taiwan’s export growth to China is mainly driven by the growth of semiconductor exports, and China considers the risk of trade war and imports large quantities of goods for hoarding; the number and value of Taiwan’s investment in China and the proportion of total investment in Taiwan have dropped significantly since 2010, indicating that Taiwan’s Taiwan’s dependence on mainland China has decreased.
The Ministry of Economic Affairs explained that Taiwan’s exports to China accounted for the growth, if you look into the data content, you will find that the export of integrated circuit is the largest force. From January to March this year, for example, nearly half of Taiwan’s exports to China are integrated circuits, with a growth rate of 33%, almost the same as the overall growth rate. In addition, China’s imports of integrated circuits in the first quarter of 2021 grew by 20.9% compared to the same period the year before, and in a global ICT spending growth rate of about 10% to 13% over the same period, the import situation is significantly higher than the global situation – that is, the main reason for the growth of Taiwan’s exports to China is because China considers trade war Risk, a large number of imports of Taiwan chips – in the case of the world relies on Taiwan chips, the Ministry of Economic Affairs said, “really do not understand how the former President Ma will be the key degree of Taiwan’s semiconductor, interpreted as Taiwan’s deeper dependence on China.”
The Ministry of Economic Affairs also said that further reading of export orders and exports of the degree of prosperity, as well as export items, including semiconductors accounted for the bulk, information and communication products, chemicals are also the main growth, showing that Taiwan mainly exports key components to China, and many exports to their own Taiwanese businessmen, and then assembled and distributed to Europe and the United States and other countries around the world.
On the other hand, the Ministry of Economic Affairs pointed out that since 2010, the number of Taiwan’s investment in mainland China, the amount and the overall proportion of China’s total foreign investment, also declined significantly. 2010, the number of Taiwan’s investment in China has been 914 pieces, 14.6 billion U.S. dollars, down to 475 pieces in 2020, 5.9 billion U.S. dollars. As a percentage of China’s outbound investment, it has even dropped from 83.81% in 2010 all the way down to 33.35% in 2020. On the other hand, the results of the three major programs to participate in investment in Taiwan, there have been 871 cases, the total amount of one trillion two hundred billion dollars, it is clear that Taiwan industry to Taiwan as a key production base, continue to reduce the dependence on China, has become an irreversible trend.
In this regard, the Ministry of Economic Affairs stated that Ma Ying-jeou’s interpretation of the figures only highlights his rudimentary understanding of the changes in Taiwan’s industrial structure.
Finally, the Ministry of Economic Affairs cited the export growth of other countries to explain. In recent years, Taiwan’s foreign exports have reached record highs. In addition to China, the amount of exports to the United States has increased from $33.52 billion in 2016 to $50.55 billion in 2020, a growth of more than 50%. The amount of exports to Japan also increased from $19.55 billion in 2016 to $23.4 billion in 2020. In April this year, Taiwan’s exports to ASEAN and Japan both reached record highs of $2.53 billion and $5.77 billion respectively, showing that Taiwan’s complete industrial chain is its most precious asset, and the efforts of Taiwan’s industries should not be belittled simply by the political language of “dependence on China.
Taiwan’s export growth to China is mainly driven by the growth of semiconductor exports, and China considers the risk of trade war and imports large quantities of stockpiles; the number and amount of Taiwan’s investment in China and the proportion of China’s total investment have dropped significantly since 2010, indicating that China’s dependence on mainland China has decreased; in addition to China, China’s export growth to the United States, Japan and ASEAN has increased. Figure: taken from the Ministry of Economic Affairs Facebook page
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