Since the start of the Covid-19 pandemic until fairly recently, Taiwan has looked like a good place to be. Surrounded by water and so able ensure that Covid cases were not brought on to the island, life appeared to be carrying much more normally than in cities overseas.\u00a0Case numbers were kept relatively low, and the majority of these were detected on entry, in quarantine. The total number of people who have died of Covid-19 there is still less than 1000 \u2013 fewer than are dying each day in the USA.<\/p>\n\n\n\n
Things are moving on, though, as the majority of the industrialised world is, in various ways, learning to coexist with the virus.\u00a0Where does that leave Taiwan?<\/p>\n\n\n\n
Taiwan\u2019s economy is built on a strong manufacturing base, exporting large amounts of integrated circuits, LCDs, computers, machinery and petrochemicals, and famous for being the world\u2019s number one producer of semiconductors.\u00a0 She has trade surpluses with many economies, and healthy foreign reserves.\u00a0At a time when the rest of the table is short of crucial supplies, Taiwan looks to be, in more ways than one, \u201cholding the chips\u201d.\u00a0\u00a0<\/p>\n\n\n\n
Germany\u2019s imports from Taiwan, for instance, are valued at USD6.1 billion annually, but that\u2019s just 1.7% of the island\u2019s total exports.<\/p>\n\n\n\n
However, there are challenges. Domestic consumption has taken a hit, and efforts to stimulate this through the issuing of vouchers not been as effective as hoped, for at two significant reasons. Firstly, that with many people leaving the workforce (not least because of a rapidly aging population), vouchers are not in themselves enough to make people spend more, when external circumstances are inclining them to be cautious and save.\u00a0 \u00a0Secondly, the current \u201cclosed border\u201d situation, which is affecting not only tourism but inbound an outbound business travel, is unsurprisingly having a negative affect on many businesses, both directly and indirectly.\u00a0<\/p>\n\n\n\n
Working from (an island) home is all very well for a while, but it\u2019s probably not sustainable for an export powerhouse in today\u2019s global economy, even when that \u201chome\u201d is shared by 11 million other people.\u00a0 Taiwan does not, after all, have the mainland\u2019s benefit of an enormous domestic market, to fall back on. Predictions are that GDP growth will fall back in 2022, unless she decides on a more nuanced, long-term way of dealing with Covid.<\/p>\n\n\n\n
In an age of global supply chains, Taiwan has great importance relative to its size, and many European businesses cannot afford to be cut off from her for long.Times like these make the benefits of having trustworthy, experienced local representation even clearer than ever \u2013 which is why so many choose to partner with Melchers there.\u00a0<\/p>\n\n\n\n
And it\u2019s not all about managing sourcing from Taiwan. This is a place that continues to seek out and import technology in the form of industrial equipment, materials and tools, all required in order to keep improving and upgrading that powerful export machine. And Taiwan\u2019s consumers are sophisticated too, with a taste for quality goods - a great opportunity for western businesses willing to make the effort to understand her unique market and culture.<\/p>\n\n\n\n