Taiwan Exports Rebound as Demand from Chinese Tech Firms Returns

(Bloomberg) --

Taiwan’s exports rose the most in more than a year as shipments to China recovered, highlighting the island’s special status as an crucial supplier of computer chips as companies gear up for the roll-out of 5G telecommunications next year.

• Exports rose 3.3% in November, the fastest pace since October last year, shortly after the U.S. imposed tariffs on $200 billion of Chinese products. Economists had expected an increase of 1.1%.

Key Insights

• Shipments to China rose 8% and 16.9% to U.S.
• The stronger-than-expected rebound was driven by strong global demand for integrated circuits and Taiwanese companies shifting production back home to avoid U.S. tariffs, according to a statement from the Ministry of Finance.
• Taiwan’s exports are likely to increase 1% in the fourth quarter, said Beatrice Tsai, the finance ministry’s chief statistician.
• The island’s overseas shipments to China and Hong Kong fell every month this year except for August and November.

Read More

• Chinese exports unexpectedly fell in November, highlighting the country’s need to agree to a phase one trade deal.
• Taiwan raised its GDP outlook last month as it benefits from U.S.-China trade war

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