Taiwan: Accelerating decoupling from China!
・Shifting to Singapore, Vietnam, Indonesia, Malaysia, Thailand
・Foxconn, Wistron, Pegatron, Quanta relocate
Summary from Forbes JAPAN article.
Rising production costs in China:
In recent years, wages in China have risen rapidly, and cost advantages have been lost.
1. The prolonged zero-COVID policy has led to many shipment and operation suspensions in China.
2. In terms of security, the Chinese authorities have also taken an intervening stance.
Taiwan’s decoupling policy:
Like Europe, the US, and Japan, the Taiwanese business community is taking anti-China actions.
1. China is not happy with Taiwan’s decoupling policy.
2. The Chinese economy is currently in a slump and losing Taiwan’s support would be the worst thing.
Trade volume between China and Taiwan:
1. In 2021, China-Taiwan trade volume was $208.4 billion (JPY 34 trillion), accounting for one-quarter of the total.
2. In 2023, it will fall 20% to $166 billion (JPY 27 trillion), a fifth of the total.
Taiwan shifts to Southeast Asia:
1. In 2021, trade volume between Taiwan and Southeast Asia was $117.5 billion (JPY 19 trillion).
2. In 2022, trade volume increased by 10% to $134.6 billion (JPY 22 trillion).
Taiwan’s dependence on China decreases:
Taiwan’s overall exports to China shrank, and the reduced amount flowed out to Southeast Asia.
Taiwan’s exports to China are the lowest since 2018.
Taiwan’s investment in China decreases:
Since 2010, investment by Taiwanese companies in China has been declining.
1. In 2023, investments will fall by 40% from the previous year to $4.17 billion (JPY 670 billion).
2. In 2018, Taiwanese companies invested less than one-third as much in China.
Investment in Southeast Asia by Taiwanese companies:
The decline in China was lost to Singapore, Vietnam, Indonesia, Malaysia, and Thailand.
40% of Taiwan’s investment was injected into Southeast Asia. This percentage is greater than investment in China.
Taiwanese investment in Vietnam:
Investment in the high-tech electronics sector has quadrupled in just a few years.
Taiwanese high-tech companies enter the market:
Foxconn,
Wistron,
Pegatron,
Quanta,
All of them are planning to expand their business in Vietnam.
https://news.yahoo.co.jp/articles/24acc7e8d232e5cf27ac9bd2face5f71ae42f032?page=2
Taiwanese companies: The background behind the successive decision to leave China
Summary from an article published in PRESIDENT Online.
China’s export ranking: Top 10 in value
China’s trade is supported by foreign capital from Taiwan.
1. Of the top 10 companies in terms of export value, 6 are Taiwanese companies.
2. Only 4 are companies from mainland China.
Taiwanese companies that contributed to China’s exports want to leave China.
Taiwanese people making money in China:
Taiwanese two-faced people are
1. They support Taiwanese independence while making a lot of money in mainland China.
2. They refer to two-faced Taiwanese merchants who want to obstruct the unification of China and Taiwan.
Taiwan’s three major industrial groups:
Xu Youtong of the Far Eastern Group and his son Xu Xudong are typical “two-faced people.”
Xu Youtong was born in Jiangsu Province and moved to Taiwan in 1949.
1. Xu Youtong established the Far Eastern Group in Taiwan and created a major company.
2. His son Xu Xudong provided political funds and fully supported the Democratic Progressive Party.
WTO trade statistics: China’s total exports and imports
1. In 2021, China’s total exports and imports were $6.51 trillion.
2. This is 29% higher than the United States and four times stronger than Japan.
However, Taiwanese companies in mainland China have made a significant contribution to this result.
China’s export ranking: Top 10
6 Taiwanese companies:
6 of the top 10 companies are Taiwanese companies (Foxconn, ASUS, Quanta Computer, etc.).
Four Chinese companies:
The remaining four are Chinese companies (Huawei, China National Petroleum Corporation, etc.).
In other words, more than half of the top 10 are Taiwanese companies.
China’s export ranking: Top 100
31 Taiwanese companies:
1. 31 companies, one-third of the total, are Taiwanese companies (India, China National Petroleum, etc.)
2. Japanese production methods and quality control were introduced in mainland China.
Famous Taiwanese companies in mainland China are:
Foxconn (foundry),
ASUS (personal computer),
Quanta Computer (personal computer),
India (personal computer),
Yu Optoelectronics (TFT-LCD),
Chi Mei Electronics (TFT-LCD),
Ting Hsin (food),
Uni-President (food),
Bao Cheng (sports goods)
Taiwanese companies in mainland China: 1990 to 2021
80,000 Taiwanese companies have implemented 44,577 projects in mainland China.
1. They invested $194 billion and employed 80 million workers.
2. The entry of Taiwanese companies has provided employment opportunities for over 200 million Chinese people.
Taiwanese companies withdraw from mainland China:
The number of Taiwanese companies, which stood at 6,000 in 2015, has fallen to 4,000.
The withdrawal of Taiwanese companies accelerated, reaching a peak in 2015.
https://president.jp/articles/-/82337?page=1