Taiwan Ready to Sign Free Trade Arrangement With China-2

2010/02/01 | By Philip Liu

Prospective Investment Areas

An annual study by the Taiwan Electrical and Electronic Manufacturers' Association (TEEMA) shows that Nanning, Guilin, and Beihai in the "pan Beibu Gulf area" (Beibu Gulf is surrounded by Guangxi, Guangdong's Leizhou peninsula, Hainan Island, and Vietnam), all in Guangxi province, enjoy high regard for prospective investment areas among Taiwanese businesses, due to the proximity of the area to ASEAN (the Association of Southeast Asian Nations) and the western Chinese market, as well as incentives offered by the Chinese government to accelerate development there.

Despite the long-term benefits of ECFA, for the moment Taiwan has to do its utmost to bolster its plunging shipment to both China and ASEAN, amid the severe impact of the global financial tsunami. In the first eight months of 2009, Taiwan's exports to China (including Hong Kong and Macao) plunged 32% to US$50.6 billion and shipment to the 10 member nations of ASEAN plummeted 33.7% to US$18.5 billion. The figures compare with 31.7% decline to US$124.7 billion for Taiwan's overall export during the period.

Taiwan's Exports to Saudi Arabia

Unit: US$1

Items	2008/01-2008/08	2009/01-2009/08	Rank	Change (%)
Total	651,041,069	463,699,943	---	-28.776
Chapter 84 nuclear reactors, boilers machinery and mechanical appliances; parts thereof	89,007,970	77,568,104	1	-12.853
Chapter 39 plastics and articles thereof	81,978,675	61,033,133	2	-25.550
Chapter 72 iron and steel	137,674,716	46,454,200	3	-66.258
Chapter 27 mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	64,273,055	45,870,259	4	-28.632
Chapter 85 electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	46,071,898	45,771,622	5	-0.652
Chapter 87 vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	27,793,744	39,510,189	6	42.155

Source: Bureau of Foreign Trade, the Ministry of Economic

Affairs

Taiwan's Exports to United Arab Emirates

Unit: US$1

Items	2008/01-2008/08	2009/01-2009/08	Rank	Change (%)
Total	990,783,256	635,071,791	---	-35.902
Chapter 84 nuclear reactors, boilers machinery and mechanical appliances; parts thereof	178,024,467	133,032,079	1	-25.273
Chapter 85 electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	186,410,844	128,992,713	2	-30.802
Chapter 39 plastics and articles thereof	175,734,040	98,034,562	3	-44.214
Chapter 72 iron and steel	103,189,768	45,508,566	4	-55.898
Chapter 87 vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	46,049,073	43,829,448	5	-4.820
Chapter 73 articles of iron or steel	47,904,941	24,532,250	6	-48.790

Source: Bureau of Foreign Trade, the Ministry of Economic

Affairs

Taiwan's exports to China tumbled 35.5% to US$32.5 billion in the period. Exports of electrical machinery and equipment dropped 24.8% to US$9.7 billion, the largest item, followed by optical devices and precision equipment with US$6.58 billion, down 48.7%; plastic products with US$3.57 billion, down 20.5%; organic chemicals with US$3.4 billion, down 33.3%; and machinery equipment with US$2.3 billion, down 40%.

Taiwan's shipments to Vietnam, a major outlet for the island in ASEAN, declined 34.2% to US$3.87 billion in the eight-month period, with shipment of mineral fuels plummeting 56.9% to US$880 million, the No. 1 item, followed by iron and steel with US$452 million, down 12.5%; plastics products, US$315.7 million, down 27.3%; machinery equipment with US$267.6 million, down 43.9%; and man-made filament with US$243.7 million, down 15.9%.

Taiwan's Exports to Turkey

Unit: US$1

Items	2008/01-2008/08	2009/01-2009/08	Rank	Change (%)
Total	943,973,933	651,455,170	---	-30.988
Chapter 85 electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	179,421,001	234,832,386	1	30.883
Chapter 84 nuclear reactors, boilers machinery and mechanical appliances; parts thereof	267,542,757	91,263,367	2	-65.888
Chapter 39 plastics and articles thereof	142,760,217	89,172,269	3	-37.537
Chapter 72 iron and steel	107,565,936	62,834,435	4	-41.585
Chapter 54 man-made filaments	15,693,563	23,806,004	5	51.693
Chapter 40 rubber and articles thereof	32,061,131	18,584,670	6	-42.034

Source: Bureau of Foreign Trade, the Ministry of Economic

Affairs

Key Emerging Market

Shipments to India, a key emerging market for Taiwan, dropped 26% to US$1.65 billion, with that for mineral fuels dropping 42.2% to US$283 million, followed by plastic products with US$276 million, down 8%; electrical machinery and equipment with US$239 million, down 36%; machinery equipment with US$228.9 million, down 29.5%; and organic chemicals with US$175.6 million, down 24.6%.

Shipments to other emerging markets also could not escape severe bashing. Taiwan's exports to South America plunged 45.5% to US$1.6 billion during the period and those to Eastern Europe suffered a steep 48.6% decline to US$1.58 billion. Shipments to the Middle and Near East fared better, dropping 26.4% to US$2.89 billion.

In South America, exports to Brazil slid 54.5% to US$826 million, with that for electrical machinery and equipment dropping 57.5% to US$220 million, the largest item, followed by machinery equipment with US$123.7 million, down 52.3%; mineral fuels with US$122.4 million, down 74.2%; plastic products with US$118.2 million, down 17.7%; and man-made filaments with US$53.9 million, down 26.2%.

Taiwan's Exports to Iran

Unit: US$1

Items	2008/01-2008/08	2009/01-2009/08	Rank	Change (%)
Total	404,628,293	323,374,009	---	-20.081
Chapter 39 plastics and articles thereof	91,425,715	67,936,899	1	-25.692
Chapter 84 nuclear reactors, boilers machinery and mechanical appliances; parts thereof	65,391,577	56,890,002	2	-13.001
Chapter 85 electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	40,830,602	30,930,012	3	-24.248
Chapter 55 man-made staple fibers	34,082,313	29,136,843	4	-14.510
Chapter 72 iron and steel	32,057,645	22,323,314	5	-30.365

Source: Bureau of Foreign Trade, the Ministry of Economic

Affairs

Exports to Mexico also shrank 53.1% to US$620.7 million, with shipment of electrical machinery and equipment contracting 69.5% to US$227.3 million, the largest item, followed by machinery equipment with US$62.8 million, down 33.8%; plastic products with US$50.6 million, down 13.8%; man-made filaments with US$39.4 million, down 7%; and iron and steel with US$38.9 million, down 13%.

Taiwan's Exports to Poland

Unit: US$1

Items	2008/01-2008/08	2009/01-2009/08	Rank	Change (%)
Total	529,672,619	300,830,635	---	-43.204
Chapter 85 electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	269,078,910	117,944,980	1	-56.167
Chapter 84 nuclear reactors, boilers machinery and mechanical appliances; parts thereof	81,311,908	47,994,576	2	-40.975
Chapter 87 vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	43,086,555	28,867,234	3	-33.002
Chapter 73 articles of iron or steel	21,707,985	19,537,673	4	-9.998
Chapter 72 iron and steel	20,617,417	15,228,783	5	-26.136
Chapter 39 plastics and articles thereof	13,992,828	11,333,508	6	-19.005

Source: Bureau of Foreign Trade, the Ministry of Economic

Affairs

In the Middle and Near East, shipments to Saudi Arabia tumbled 28.7% to US$463.7 million, with machinery equipment being the largest item, amounting to US$77.6 million, down 12.9%, followed by plastic products with US$61 million, down 25.6%; iron and steel with US$46.5 million, down 66.3%; mineral fuels with US$45.9 million, down 28.6%, and electrical machinery and equipment with US$45.8 million, down 0.6%.

Exports to United Arab Emirates slipped 35.9% to US$635 million, with machinery equipment reaching US$133 million, the largest, down 25.3%, followed by electrical machinery and equipment with US$129 million, down 30.8%; plastic products with US$98 million, down 44.2%; iron and steel with US$45.5 million, down 55.9%; and auto parts with US$43.8 million, down 4.8%.

Shipments to Turkey dropped 31% to US$651 million, with that of electrical machinery and equipment declining 30.9% US$234.8 million, the largest item, followed by machinery equipment with US$91.3 million, down 65.9%; plastic products with US$89.2 million, down 37.5%; iron and steel with US$62.8 million, down 41.6%; and man-made filaments with US$23.8 million, down 51.7%.

Taiwan's Exports to Russia

Unit: US$1

Items	2008/01-2008/08	2009/01-2009/08	Rank	Change (%)
Total	650,537,423	331,662,962	---	-49.017
Chapter 85 electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	165,896,592	105,157,757	1	-36.612
Chapter 84 nuclear reactors, boilers machinery and mechanical appliances; parts thereof	141,597,852	69,746,062	2	-50.744
Chapter 39 plastics and articles thereof	82,755,210	32,115,437	3	-61.192
Chapter 87 vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	45,659,681	27,287,840	4	-40.236
Chapter 73 articles of iron or steel	35,439,082	17,879,778	5	-49.548
Chapter 72 iron and steel	40,187,289	13,601,817	6	-66.154

Source: Bureau of Foreign Trade, the Ministry of Economic

Affairs

Exports to Iran dropped 20% to US$323.3 million, with shipments of plastics

products declining 25.7% to US$67.9 million, followed by machinery equipment with US$56.9 million, down 13%; electrical machinery and equipment with US$30.9 million, down 24.2%; man-made fiber with US$.29.1 million, down 14.5%; and iron and steel, with US$22.3 million, down 30.4%.

Exports to Poland, Taiwan's largest outlet in Eastern Europe, slid 43.2% to US$300.8 million, with electrical machinery and equipment shipments plunging 56.2% to US$117.9 million, the largest item, followed by machinery equipment with US$48 million, down 41%; auto parts with US$28.9 million, down 33%; iron and steel products with US$19.5 million, down 10%.

Shipments to Russia, another important emerging market, took a severe beating, down 49% to US$331.7 million, with that of electrical machinery and equipment dropping 36.6% to US$105.2 million, the largest item, followed by machinery equipment with US$69.7 million, down 50.7%; plastic products with US$32.1 million, down 61.2%; auto parts with US$27.3 million, down 40.2%; and iron and steel products with US$17.9 million, down 49.5%.