In 2012, Taiwan’s trade represented 140% of GDP and was valued at over $650 billion, making it the world’s 19th largest trader even though it is only the 28th largest economy in the world. Taiwan’s economy focuses on producing parts and components that are incorporated into final products, often sold by companies from Japan, the United States, or European Union. Over 70% of Taiwan’s exports comprise intermediate goods. Additionally, Taiwan businesses rely heavily on overseas production networks to make goods for export. Taiwan’s changing international trade and investment patterns have been characterized by growing economic interdependence with China in particular, but also East Asia more broadly. Taiwan’s trade with ASEAN countries has increased, reflecting the integration by Taiwan business of ASEAN into regional supply chains.
Opportunities for UK businesses
With a population of 23 million, Taiwan is a thriving democracy, vibrant market economy, and a highly attractive export market. Taiwan is a sophisticated consumer market, plugged into consumer trends in Japan and Korea. Taiwan is generally a target market for high-quality, differentiated products rather than commodity items. The best prospects for UK businesses include: electronics, chemicals, information and communications products, transportation equipment, machinery. In order for Taiwan to meet its energy needs, coal, oil and gas are increasingly presenting good export opportunities for UK businesses.
Visit Export Britain for more information and to find support in this market.