Taiwan tech firms set to join exodus from China amid trade war, says Citibank research
- Assuming between 30 to 50 per cent of Taiwanese tech firms leave China, up to 3 million jobs could be lost, according to Citibank
- Taiwanese tech firms employ some 10 million people on the mainland
A 25 per cent tariff will largely wipe out cost advantages of Taiwanese tech firms on the mainland, accelerating their exodus from China and lead to as many three million job losses, a Citibank study predicted on Thursday.
“Taiwan firms’ exports account for at least 10 per cent of total Chinese exports, and 37 Taiwanese firms operating in China are in the top 100 exporters’ list to US,” the report said, adding that because of rapidly rising wages and other costs, labour intensive industries have already moved out of China.
Citibank was recently judged by FinanceAsia as the best international bank in Taiwan.
The Trump administration has imposed 25 per cent tariffs on US$250 billion of Chinese exports since the trade war started more than a year ago.
According to a research report by China International Capital Corp (CICC), mainland-listed companies that make computers and electronics products will be the second most affected by the additional 15 per cent tariffs that were imposed in May.
