Advertisement
Taiwan economy
EconomyGlobal Economy

US overtakes mainland China as Taiwan’s main export market, sign of ‘strategic shift’ amid tech decoupling

  • Taiwan’s US$26.625 billion worth of exports shipped to the US in the first quarter beat the US$22.407 billion sent to mainland China
  • Mainland China had led the US as the top destination for Taiwan’s exports every year for the past decade, although the gap had been narrowing

Reading Time:4 minutes
Why you can trust SCMP
8
A visitor views a robotic arm in motion during the 2024 Taiwan International Machine Tool Show in Taipei in March. Photo: EPA-EFE
Ralph Jennings

The United States has surpassed mainland China as world hi-tech hub Taiwan’s top export destination this year in a sign that supply chain decoupling has made a palpable shift toward Western-allied markets.

Advertisement

Taiwan’s US$26.625 billion worth of exports shipped to the US in the first quarter beat the US$22.407 billion sent to mainland China, according to International Trade Administration data.

Mainland China has led the US as the top destination for Taiwan’s exports every year for the past decade, although the gap with mainland China fell last year to less than US$20 billion from more than US$45 billion the previous year.

Many foreign-invested importers of Taiwanese goods in mainland China, including those in the market for components for phones and PCs that are assembled for re-export, have moved operations to Southeast Asia or further afield because of trade schisms between Beijing and Washington, analysts said

US officials have placed import tariffs on goods from mainland China since 2018, while also restricting American business with a growing list of Chinese technology firms.

Advertisement
loading
Advertisement