China’s ‘slowing economic situation’ again hurt Taiwan’s export orders in October
- Taiwan’s export orders totalled US$54.4 billion in October, down by 6.3 per cent year on year
- Orders from Taiwan’s biggest buyer, mainland China and Hong Kong, reached US$10.5 billion last month, falling by 26.7 per cent year on year
Export orders from Taiwan to its biggest market of mainland China and Hong Kong fell for a seventh straight month in October, according to data released on Monday, with analysts pointing to rising levels of inflation and coronavirus-induced weak overseas demand and supply chain disruptions.
Orders to be shipped from Taiwan to mainland China and Hong Kong reached just US$10.5 billion last month, down by 26.7 per cent year on year, according to Taiwan’s Ministry of Economic Affairs.
Taiwan’s orders from mainland China and Hong Kong had already fallen by 27.9 per cent year on year in September to US$11.55 billion.
“The orders from mainland China dropped due to their slowing economic situation … hence weak domestic demand,” said Hu Jin-li, a professor at the Institute of Business and Management at National Yang Ming Chiao Tung University in Taipei.
Chinese manufacturers traditionally buy Taiwan’s exports, such as components for PCs and smartphones, for final factory assembly and re-export, with mainland China the destination for 28.21 per cent of Taiwan’s total exports last year.