Taiwanese exports to exceeded Taiwan’s imports from other Asian countries by $46 billion in 2014. Similarly, Taiwan achieved a $9.5 billion trading surplus with North American nations.
The fact that Taiwan earns these country-specific trade surpluses indicates Taiwanese competitive advantages for a specific set of export products highlighted below.
These major product supply advantages help explain why Taiwan achieved the world’s fifteenth-largest trade surplus of $39.7 billion during 2014, albeit lagging leader China’s $384.3 billion balance.
Taiwan’s trade surplus grew by 77.4% since 2010 when its positive balance stood at $22.4 billion.
Taiwan Major Product Supply Advantages
Top 10
Presented in descending order, the following list showcases the general product categories under which Taiwan earned the highest trade surpluses in 2014.
- Electronic equipment: US$66.1 billion (53.6% of all product surpluses)
- Plastics, plastic articles: $13.8 billion (11.2%)
- Optical, technical, medical apparatus: $9.2 billion (7.5%)
- Articles of iron or steel: $6.3 billion (5.1%)
- Machinery: $3.5 billion (2.9%)
- Vehicles : $3.3 billion (2.7%)
- Manmade filaments: $3.1 billion (2.5%)
- Knit or crochet fabric: $2.6 billion (2.1%)
- Base metal tools, cutlery: $2.3 billion (1.9%)
- Toys, games: $1.7 billion (1.4%)
The above top 10 product categories represent 90.8% of Taiwan’s overall product-category surplus subtotal which amounted to $123.3 billion. For that subtotal, 35 of Taiwan’s 97 general product categories delivered a surplus in 2014 while the remaining 62 categories incurred deficits.
Growth
Taiwan enriched its trade surplus amounts at the fastest-pace during 2010 to 2014 under the product categories below.
- Modified starches, enzymes: Up 1,592% since 2010 (US$56 million)
- Cotton: Up 400% ($72.8 million)
- Organic chemicals: Up 119.4% ($1.2 billion)
- Arms and ammunition: Up 63.1% ($26.4 million)
- Live trees, plants: Up 42.4% ($165.7 million)
- Electronic equipment: Up 37.2% ($66.1 billion)
- Base metal tools, cutlery: Up 34.9% ($2.3 billion)
- Other base metal goods: Up 32.3% ($1.4 billion)
- Knit or crochet fabric: Up 30.3% ($2.6 billion)
- Articles of iron or steel: Up 24.7% ($6.3 billion)
Detail
From the perspective of the more detailed 4-digit harmonized tariff system (HTS) level, below are 15 products that enabled Taiwan to achieve the highest surpluses in its international trade with other countries.
-
<
- Integrated circuits/microassemblies: US$37.9 billion
- Liquid crystal/laser/optical tools: $11.7 billion
- Solar power diodes/semi-conductors: $6.5 billion
- Unrecorded sound media: $5.2 billion
- Processed petroleum oils: $4.8 billion
- Computer parts, accessories: $4.5 billion
- Printed circuits: $4.3 billion
- Iron and steel screws, bolts, nuts, washers: $3.9 billion
- Styrene polymers: $3.5 billion
- Phone system devices: $3.4 billion
- Electric sound/visual signal bells or alarms: $3 billion
- Polyacetal/ether/carbonates: $3 billion
- Automobile parts/accessories: $2.2 billion
- Synthetic yarn woven fabrics: $1.9 billion
- Bicycles, other non-motorized cycles: $1.7 billion
Among these, integrated circuits and microassemblies had the fastest-growing Taiwanese surplus with a 121.9% gain since 2010. In second place were processed petroleum oils up 94.1% while unrecorded sound media exports moved ahead in value by 52.3%.
Taiwan Major Product Supply Advantages by Country
Top 10
Presented in descending order, the following list shows with which trade partners Taiwan earned the highest trade surpluses in 2014.
- Hong Kong: US$40.8 billion (31.6% of Taiwanese country-specific surpluses)
- China: $34.1 billion (26.4%)
- Singapore: $12.2 billion (9.4%)
- Philippines: $7.5 billion (5.8%)
- Vietnam: $7.4 billion (5.7%)
- United States: $7.2 billion (5.6%)
- United Kingdom: $2.4 billion (1.8%)
- Thailand: $1.8 billion (1.4%)
- Netherlands: $1.7 billion (1.3%)
- Turkey: $1.5 billion (1.2%)
The above 10 trade partners represent 90.3% of Taiwan’s subtotal surplus of $129.1 billion from the 133 geographic entities with which Taiwan demonstrated competitive trade advantages. That subtotal excludes the 88 geographic entities with which Taiwan incurred trade deficits.
Growth
Taiwan enriched its trade surplus amounts with the countries below at the fastest-pace during 2010 to 2014.
- Nauru: Up 5,816% since 2010 (US$9.8 million)
- Saint Kitts/Nevis: Up 3,405% ($5.2 million)
- Colombia: Up 2,168% ($437.5 million)
- Haiti: Up 1,593% ($20.8 million)
- Niger: Up 951% ($1.1 million)
- Turkmenistan: Up 811.3% ($2.1 million)
- Ethiopia: Up 796% ($18 million)
- Cook Islands: Up 671.4% ($54,000)
- Montserrat: Up 670% ($77,000)
- Tanzania: Up 662.3% ($90.3 million)
From the above list, Taiwan showed major product supply advantages over trade partners with comparatively small populations and for generally small surplus amounts.
Hong Kong
Below are the products that gave Taiwan the highest surpluses in its international trade with Hong Kong.
- Integrated circuits/microassemblies: US$22.4 billion (54.9% of Taiwan’s surplus vs. Hong Kong)
- Unrecorded sound media: $2 billion (5%)
- Processed petroleum oils: $1.6 billion (4%)
- Solar power diodes/semi-conductors: $1.6 billion (3.8%)
- Liquid crystal/laser/optical tools: $1.3 billion (3.3%)
- Computer parts, accessories: $955.7 million (2.3%)
- Printed circuits: $800.4 million (2%)
- Styrene polymers: $731.2 million (1.8%)
- Phone system devices: $640.1 million (1.6%)
- Lenses, prisms, mirrors: $601.9 million (1.5%)
Among these, lenses, prisms and mirrors had the fastest-growing Taiwanese surplus with Hong Kong posting a 193.4% gain from 2010 to 2014. In second place were computer parts and accessories up 59.2% followed by integrated circuits and microassemblies ahead by 33%.
China
Below are the products that gave Taiwan the highest surpluses in its international trade with China.
- Liquid crystal/laser/optical tools: US$9.8 billion (28.8% of Taiwan’s surplus vs. China)
- Integrated circuits/microassemblies: $8.7 billion (25.5%)
- Solar power diodes/semi-conductors: $2.7 billion (7.9%)
- Cyclic hydrocarbons: $2.6 billion (7.6%)
- Printed circuits: $1.7 billion (5.1%)
- Styrene polymers: $1.6 billion (4.6%)
- Acyclic alcohols: $1.5 billion (4.5%)
- Electric sound/visual signal bells or alarms: $1.4 billion (4.2%)
- Polyacetal/ether/carbonates: $1.3 billion (3.7%)
- Optical fiber cables, sheets, plates: $1.2 billion (3.6%)
Among these, electric sound/visual signal bells or alarms had the fastest-growing Taiwanese surplus with China posting a 289.7% gain from 2010 to 2014. In second place were cyclic hydrocarbons up 66.5% followed by integrated circuits and microassemblies ahead by 22.5%.
Singapore
Below are the products that gave Taiwan the highest surpluses in its international trade with Singapore.
- Integrated circuits/microassemblies: US$8.8 billion (72.2% of Taiwan’s surplus vs. Singapore)
- Processed petroleum oils: $3.1 billion (25.2%)
- Phone system devices: $235.2 million (1.9%)
- Computer parts, accessories: $171.4 million (1.4%)
- Ethers: $155.7 million (1.3%)
- Solar power diodes/semi-conductors: $149.5 million (1.2%)
- Unrecorded sound media: $85.6 million (0.7%)
- Platinum (unwrought): $83.3 million (0.7%)
- Saturated acyclic mono acids: $61.6 million (0.5%)
- Printed circuits: $58.4 million (0.5%)
Among these, unrecorded sound media had the fastest-growing Taiwanese surplus with Singapore posting a 620.5% gain from 2010 to 2014. In second place were computer parts and accessories up 106.1% followed by solar power diodes/semi-conductors ahead by 56.3%.
See also Taiwan’s Top 10 Exports, Highest Value Taiwanese Export Products, Taiwan’s Top 10 Imports and Taiwan’s Top Import Partners
Research Sources:
The World Factbook, Country Profiles, Central Intelligence Agency. Accessed on December 11, 2015
Trade Map, International Trade Centre. Accessed on December 11, 2015
Investopedia, Net Exports Definition. Accessed on December 11, 2015