Taiwan Posted Surplus of US$20 B. in Trade With China in First 8 Months

Taipei, Nov. 3, 2005 (CENS)--Taiwan's exports to mainland China witnessed an annual rise of 13.8% in August of this year, the highest level in four months, yielding a trade surplus of US$19.9 billion in Taiwan's favor in the first eight months of the year, according to statistics released by the Bureau of Foreign Trade (BOFT).

The BOFT attributed the rise to the ballooning exports of such high-tech products as liquid crystal display (LCD) panels, IC chips, and microelectronic devices to the mainland. If the demand in the mainland keeps growing for such products, Taiwan's trade surplus is very likely to break the US$30 billion mark, the highest level ever recorded for trade with mainland China.

The BOFT's statistics showed that in August alone, Taiwan's total exports posted a modest growth of 7.6%; however, exports to the mainland in the same month shot up to 13.8%. This implies that Taiwan's exports more heavily depend on the market in the mainland than on most other areas.

In August, Taiwan's IC chips, microelectronic devices, printing circuit boards (PCBs), light emitting diodes (LEDs), and LCD panels all saw an annual export jump of more than 17%. These products were the major contributors behind the island's sharp rise of 13.8% in exports to the mainland for the month.

Taiwan exports to China Jan.-Aug. 2005
Items	Export value (US$100M)	Growth (%)
Total	327.4	11.7
Electric machinery equipment	100.8	14.9
Optical devices	41.3	2.8
Machinery	39.6	7.2
Plastics & related products	34.5	20.1
Steel & iron	22.0	37.6
Organic chemical products	16.7	48.5
Synthetic fabrics	8.5	-2.3
Copper & related products	8.4	21.6
Industrial-use textile products	4.5	-0.9
Artificial cotton filament	3.6	-14.4

Source: BOFT