Taiwan and Japan: Dynamic partners in commerce, investment and industry
By actively pursuing opportunities through bilateral, regional and multilateral channels, Taiwan has developed a dynamic economy.
Today, major industries in Taiwan include electronics, petroleum refining, chemicals, textiles, machinery, food processing, services, consumer products and pharmaceuticals.
With its population of 23.8 million, Taiwan offers investors attractive market opportunities and most importantly, a strong regional partner with an increasingly significant role in global industrial transformation.
The international community has praised Taiwan for its effective response to the coronavirus pandemic. Border controls, public- and private-sector cooperation, big data analytics, testing and contact-tracing have enabled Taiwan to tackle the challenges of containing the coronavirus and protecting its economy.
As the economy recovers, the longer-term challenge is global competition and Taiwan is repositioning itself as one of Japan’s most important regional partners.
From 1952 to 2020, over 33,000 cases of Japanese foreign direct investment reached Taiwan, amounting to $48.7 billion.
Since 1970, Taiwan’s trade promotion organization, the Taiwan External Trade Development Council (TAITRA), has played an important role in Taiwan- Japan relations.
“As Japan’s fourth-largest trading partner, our bilateral trade volume in 2020 reached $71.18 billion. Although Taiwan and Japan do not have formal diplomatic relations, our bilateral civic friendship, economic, trade and industry cooperation exist on a very strong foundation. Moving forward, Taiwan will remain one of the best global cooperative partners for Japan.”
As Taiwanese and Japanese manufactures share the need to develop third-country markets together, TAITRA is supporting companies as they work more closely together to serve customers in foreign markets. “TAITRA handles Japan-Taiwan industrial supply chain cooperation in third countries through trade promotion activities and industrial cooperation initiatives to coordinate a win-win strategy for Taiwanese and Japanese manufacturers,” Chiu said.
JTEA playing crucial role
The desire of Taiwan and Japan to cooperate more closely is being strengthened by the Japan-Taiwan Exchange Association.
“As essential partners, Japan and Taiwan have developed economic ties in various fields over several decades,” said Hiroyasu Izumi, the Japan-Taiwan Exchange Association’s chief representative.
“In 2020, trade remained in line with yearly averages despite increases in transportation costs, and trade is expected to increase once shipping container shortages and the rise in transportation costs is resolved,” Izumi said. “Demand for electronic components and semiconductors is also expected to increase.
“Key industries have realized the importance of restructuring their supply chains and to recognize the risks involved in centralized production and procurement. The digitalization and digital transformation of businesses will lead to increased demand within the semiconductor, information technology and electronics industries and we expect trade in these sectors to increase accordingly.
“It is important to strengthen the Taiwan-Japan relationship in order to achieve sustainable economic growth. We believe our cooperation will continue and together we will find solutions to global challenges.”