Taiwan has a handful of advantages when it comes to conducting regional and international trade. Geographically, Taiwan is located on the Western Pacific Maritime Trade Route, which connects East Asian nations with the vast Southeast Asian market. Politically, the authority has published a number of favorable trade policies. Diplomatically, long-standing strategic and economic partnership made Taiwan one of the leading trade partners for the United States.
Meanwhile, Taiwan exported over 50 billion U.S. dollars worth of commercial services in 2019, of which nearly 30 percent were contributed by travel services. Taiwan is one of Asia's most popular tourist destinations, attracting more than ten million international visitors each year. Mainland China, Hong Kong and Macao, and Japan were three of the leading sources for visitors to Taiwan.
Furthermore, Taiwan is one of the leading destinations for regional and global foreign direct investment as well. In 2020, Taiwan recorded an FDI inflow of around 8.8 billion U.S. dollars, of which about 5.9 billion U.S. dollars were from mainland China.
Exports from Taiwan
As the world's second-largest electronic circuit component exporter and the fifth-largest semiconductor device exporter, Taiwan has taken a crucial position in the global hi-tech supply chain. In 2020, the export value of integrated circuits from Taiwan amounted to nearly 3.4 trillion New Taiwan dollars, making up more than 35 percent of Taiwan's exports in goods that year. Mainland China, Hong Kong, and Singapore are the three leading destinations for integrated circuit produced in Taiwan. Other than the long-standing trade partners such as the United States and mainland China, the government has been working on enhancing its trade relationship with Southeast Asia, South Asia, and Australasia since 2016. As of 2020, ASEAN has surpassed the United States to become the second-largest trade partner of Taiwan.Meanwhile, Taiwan exported over 50 billion U.S. dollars worth of commercial services in 2019, of which nearly 30 percent were contributed by travel services. Taiwan is one of Asia's most popular tourist destinations, attracting more than ten million international visitors each year. Mainland China, Hong Kong and Macao, and Japan were three of the leading sources for visitors to Taiwan.
Imports to Taiwan
Lacking natural resources, Taiwan relies on imports for its raw material needs. In 2020, agricultural products and industrial materials accounted for nearly two-thirds of the total goods imported to Taiwan. Resulting from its geographical location and historical ties, mainland China has been Taiwan's largest import partner for decades. Regardless of several trade disputes in recent years, the total import value from mainland China to Taiwan has grown steadily.Furthermore, Taiwan is one of the leading destinations for regional and global foreign direct investment as well. In 2020, Taiwan recorded an FDI inflow of around 8.8 billion U.S. dollars, of which about 5.9 billion U.S. dollars were from mainland China.
