Taiwan seeks to benefit from China power crisis if export orders shift, central bank governor says

Central bank governor Yang Chin-long told Taiwan’s parliament on Thursday that manufacturers could shift orders to the island if China’s power crunch continues

China’s new export orders contracted again in September, but less than the previous month, according to its official manufacturing purchasing managers’ index

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China is grappling with power cuts and electricity rationing after a collision of tight coal supplies, tougher emissions standards and strong manufacturing demand has pushed the price of coal to eye-watering records. Photo: AFP

Published: 2:30pm, 30 Sep 2021

Taiwan may benefit from orders being shifted to the island if China’s power curbs disrupt the country’s exports, Taiwan central bank governor Yang Chin-long said on Thursday.

The world’s second-largest economy is grappling with power cuts and electricity rationing after a collision of tight coal supplies, tougher emissions standards and strong manufacturing demand has pushed the price of coal, the biggest source of China’s electricity, to eye-watering records.

Yang, taking lawmaker questions in parliament, said that if China’s power crunch caused its exports to do badly, manufacturers could shift orders to the island.

“If their exports are bad, there will be an order transfer effect for Taiwan,” he said.

China’s new export orders contracted again in September, but less than the previous month, according to its official manufacturing purchasing managers’ index.

Yang said the central bank is also paying close attention to the impact of China’s electricity problems on financial markets.

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