The industries of mainland China and Taiwan have long-established supply chain relations, and mainland China now relies heavily on Taiwan's semiconductors and information communication products. The increasing demand for electronics components, ICT products and machinery equipment due to emerging technologies and remote communication applications, as well as the U.S.' export bans on Huawei have pushed our domestic supply chains to speed up manufacturing, driving Taiwan's exports across the strait.
Because of Taiwan's close industrial ties with the U.S. and the effects of the US-China trade conflict, Taiwan's exports to the U.S. continued to grow in 2020. The Ministry of Economic Affairs (MOEA) assists companies with their global deployments by targeting ASEAN countries, Europe and the U.S. via online Taiwan Expos, virtual exhibitions, trade missions, video trade tasks, online product launches, and other practices during pandemic travel restrictions. Due to the outbreak of COVID-19, the "stay-at-home economy" has caused Taiwan's exports of electronic products to increase, enabling exports to ASEAN countries, Europe and the U.S. to experience positive growth since October, 2020.
In response to global changes, companies all over the world are restructuring their supply chains. The relocation of Taiwanese businesses back to Taiwan has also led to the growth of exports. The MOEA is continuing to facilitate the return of Taiwanese businesses through the "Three Major Programs for Investing in Taiwan". Given Taiwan's advantageous pool of highly skilled talents, Taiwan is expected to become Asia's center of high-end manufacturing, high-tech R&D, advanced processing of semiconductors, and green energy development.
In addition, the MOEA continues to develop business opportunities under the New Southbound Policy and promote cooperation in the fields of food biotechnology, smart cities, and e-commerce. Taiwanese businesses with mass manufacturing needs can leverage this policy to transfer their production lines to Southeast Asia or South Asia and tap into the global market.