Japan has long been one of Taiwan’s most important trade and investment partners. Japan it is our third largest trading partner, while we are Japan's fourth largest trading partner. Bilateral trade between Taiwan and Japan totaled 67.2 billion US dollars in 2018 for an increase of 7.22% over 2017.
With regard to exports, Japan was Taiwan’s fourth largest export destination in 2018, accounting for 6.87% of Taiwan’s total exports, while Taiwan was Japan’s fourth largest export destination, accounting for 5.82% of Japan’s total exports. Taiwan’s exports to Japan totaled 23.09 billion US dollars in 2018 for an increase of 11.12% over 2018.
As for imports, Japan was Taiwan’s second largest source of imports in 2018, accounting for 15.4% of Taiwan’s total imports. Taiwan was Japan’s sixth largest source of imports, accounting for 3.78% of Japan’s total imports in 2018. In 2018, Taiwan’s total imports from Japan amounted to US$ 44.16 billion for an increase of 5.29% over 2017.
Japan is the fourth largest source of foreign investment in Taiwan, with a cumulative investment of about 20.8 billion US dollars. By the end of 2018, Japan’s foreign direct investments (FDI) in Taiwan consisted of over 10,488 cases, with about 49% of them in the service sector, including wholesale and retail trade, construction, real estate, and insurance. The second largest sector of Japan’s FDI in Taiwan is in the manufacturing sector, including chemical manufacturing, electronic parts manufacturing and metal product manufacturing.
Comparatively, Taiwan has invested more than 9.1 billion US dollars in Japan. In recent years, Taiwanese companies have been actively cooperating with Japan in the manufacturing of semiconductors, electronics and electrical products.
Annual Bilateral Economic and Trade Conference
The "Taiwan-Japan Economic and Trade Conference" has been held annually by the Japan-Taiwan Exchange Association and the Taiwan-Japan Relations Association 43 times consecutively. Our two sides use this platform to resolve difficulties encountered in trade; for example, we lifted import controls on Japanese beef last year. In addition to difficulties encountered in trade, this platform has been used to discuss cooperation in industries, agriculture, medicine, intellectual property and other fields.
Current status of economic and trade cooperation between Taiwan and Japan
Our two sides have successively signed important agreements and memoranda regarding cooperation in such areas as investment (2011), industrial bridging (2012), e-commerce (2013), taxation (2015), and customs cooperation and mutual assistance (2017), as well as other important economic and trade agreements to deepen bilateral economic and trade cooperation.