Apple supplier Foxconn, also known as Hon Hai Precision Industry, is headquartered in Taiwan but has factories throughout mainland China.
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BEIJING – Data shows that Taiwan is more dependent on China for trade than it is on the US, even if US House of Representatives Speaker Nancy Pelosi threw her weight behind Taiwan this week on a high-level visit.
Taiwan came under military and economic pressure from Beijing this week, after the self-ruled democratic island allowed a visit by Pelosi, the highest-ranking US official to set foot in Taiwan in 25 years.
The visit came despite Warning from China, which considers Taiwan part of its territory and maintains the island, has no right to conduct foreign relations. The United States recognizes Beijing as China’s sole legitimate government and maintains unofficial relations with Taiwan.
However, Taiwan’s business and economic ties with mainland China and Hong Kong have grown to such an extent that the region is by far the island’s largest trading partner.
Many large Taiwanese companies in high-tech industries such as largest chip manufacturer in the world – Taiwan Semiconductor Manufacturing Company, or TSMC. – operate factories in mainland China.
Last year, mainland China and Hong Kong accounted for 42 percent of Taiwan’s exports, while the United States accounted for 15 percent, according to official Taiwan data accessed through Wind Information.
In total, Taiwan exported $188.91 billion worth of goods to mainland China and Hong Kong in 2021. More than half were electronic components, followed by optical equipment, according to Taiwan’s Ministry of Finance. .
The data shows that Taiwan’s exports to Southeast Asia are even larger than those to the US – $70.25 billion to the region, compared with $65.7 billion to the US.
As the source of Taiwan’s imports, mainland China and Hong Kong topped the list with 22% market share. The US only accounts for 10% of the market share, behind Japan, Europe and Southeast Asia.
Growing Trade with Mainland China
In recent years, Taiwan has purchased an increasing amount of products from mainland China and vice versa.
Over the past five years, Taiwan’s imports from mainland China have grown by about 87% compared with a 44% growth in imports from the US.
Taiwan’s exports to mainland China grew 71% from 2016 to 2021. But exports to the US nearly doubled, up 97%.
Compare with Shanghai
