Taiwan faces another rival - ASEAN in China's market

The latest statistics from Taiwan Bureau of Foreign Trade shows that since ASEAN plus one came into effect last January, ASEAN-10 members have achieved eye-catching performance in the mainland market, their market share increased from 10.6 percent in 2009 to 11.1 percent in 2010, their export growth of 8 man-made fiber products was also better than Taiwan.

While Taiwan’s imports from and exports to the mainland hit record highs in the previous year, its market share in the mainland dropped from 8.5 percent in 2009 to 8.3 percent in 2010, showing that the complete integration of the ASEAN plus one (China) makes Taiwan face another rival – ASEAN in the mainland market, in addition to the strong competition from South Korea.

According to 2010 cross-strait trade statistics announced by Taiwan Bureau of Foreign Trade, Taiwan’s exports to the mainland reached US $114.75 billion, growing 37.1 percent year on year, Taiwan imports from the mainland amounted to US $37.58 billion, expanding 47.1 percent year on year, enjoying a surplus of up to US $77.17, an increase of 32.7 percent year on year, both hit record highs, but the Bureau of Foreign Trade estimates that growth rates of imports from and exports to the mainland will slowed down this year to 17.3 percent and 15.7 percent, respectively.

Taiwan Bureau of Foreign Trade analyzes that the mainland's No. 1 source of imports still was Japan last year, its market share was 12.7 percent, down 0.3 percentage points from 2009 market share at 13 percent; Taiwan was the 5th largest source of mainland China’s imports, Taiwan’s market share formed 8.3 percent, down 0.2 percentage points from 8.5 percent in 2009.

However, after complete integration, ASEAN 10 countries became the 3rd largest source of Mainland’s imports, China’s imports from ASEAN 10 countries grew s as high as 45.3 percent, ASEAN’s market share increased to 11.1 percent, 0.5 percentage points higher than 2009.

Taiwan Bureau of Foreign Trade emphasized that export growth of 8 man-made fibers products from ASEAN to the mainland was better than the growth rate of Taiwan; only the growth rates of mechanical appliances and inorganic chemistry from Taiwan were better than the ASEAN countries, reflecting that Taiwan faces increased competitive pressure in the mainland market after the complete integration of ASEAN plus one.