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Economics Ministry to address falling exports to China

Economics Ministry to address falling exports to China

Taipei, March 22 (CNA) The Ministry of Economic Affairs (MOEA) said on Sunday that it is working with Taiwanese companies to diversify their operations away from China and offset the impact of the rising number of Chinese suppliers. The ministry said that semi-finished goods and components account for a big share of Taiwan's exports to China, with a major focus on the information, communications, electronics and petrochemical sectors. With an increasing number of domestic suppliers joining the supply chain in China, Chinese companies have beefed up purchases from local suppliers at the cost of imports from Taiwan, the MOEA said in a news release. Meanwhile, Taiwanese investment in China has slowed down significantly from its peak in 2000 and has shifted away from raw materials and components to the service sector, dealing another blow to Taiwan's exports, according to the ministry. To reduce over reliance on the China market, the ministry has proposed plans to promote the annual expansion of markets for Taiwanese companies and help identify business opportunities around the world. The MOEA also stressed the benefits of the Taiwan-China Economic Cooperation Framework Agreement (ECFA) that took effect in 2011, noting that those benefits could be further expanded if a follow-up trade-in-goods pact is signed. However, the ministry was less confident that the ECFA will help save US$9 billion per year in tariffs on Taiwanese exports to China as initially expected, saying that would depend on the results of negotiations on the trade-in-goods agreement. The MOEA was responding to a report in the Liberty Times on Sunday, which cited Chinese Customs data as indicating a fall in China's imports from Taiwan since the ECFA took effect in 2011. In 2014, Chinese imports from Taiwan fell 2.8 percent from the previous year while Taiwan's share of Chinese imports dropped by 0.2 percentage points to 7.8 percent, making Taiwan the only one of China's top five sources of imports to register a decline in both figures, the report said. Liberty Times also claimed that Taiwan saved only US$560 million per year in tariffs on exports to China under the ECFA's early harvest program between 2011 and 2014, a long way behind the target saving of NT$9 billion in Chinese tariffs per year. (By Milly Lin and Jeffrey Wu)


Updated : 2021-01-23 13:53 GMT+08:00