Air Freight News

Taiwan chip exports to China sputter on tensions, falling demand

Taiwan’s exports of integrated circuit chips to China and Hong Kong fell for a fourth month in February as Washington-Beijing tensions simmer and demand for electronics continues to drop off. 

Exports of IC chips — which are pivotal components of electronic appliances, computers and smartphones — to China and Hong Kong dropped 31.3% from a year earlier, according to data from Taiwan’s Ministry of Finance. It was the worst decline since 2009, topping January’s 27.1% fall.

China’s market share of Taiwanese IC exports plunged to the lowest level since February 2019, based on Bloomberg calculations of official data. 

The total amount of semiconductors Taiwan shipped worldwide declined 17.3% last month from a year ago. Exports to the US jumped 22.3%. 

Taiwan is the world’s largest producer of cutting-edge chips, and demand has cooled rapidly for that advanced technology that has bolstered its economy. Taiwan is also a geopolitical hotspot, contributing to the fall.

As China has tried to develop its own advanced technologies, the US has moved to block the world’s second-largest economy from doing so. In January, the Biden administration secured an agreement with the Netherlands and Japan to restrict exports of some advanced chipmaking machinery to China.  

Chinese President Xi Jinping recently railed at US efforts to hinder its technology progress, rallying his country’s private sector to help overcome “containment” by the US and other countries — a rare direct criticism of China’s biggest trading partner.

US President Joe Biden has also repeatedly stated that Washington would defend against a Chinese attack of Taiwan, comments that have angered Beijing.

Bloomberg
Bloomberg

{afn_job_title}

© Bloomberg
The author’s opinion are not necessarily the opinions of the American Journal of Transportation (AJOT).

Similar Stories

China scraps tariffs on Australian wine as relations improve

China lifted its punitive tariffs on Australia’s wine exports, signaling an end to a three-year campaign of trade pressure on Canberra and raising hopes for a revival of the billion-dollar…

View Article
US is asking allies to tighten servicing of chip gear in China

The US is asking allies to impose more restrictions on maintaining chipmaking equipment in China as the Biden administration seeks to further thwart Beijing’s ambition to build cutting-edge semiconductors.

View Article
France delays new EU-Canada trade deal vote after Senate setback

The French government will delay holding another vote on the European Union’s free-trade deal with Canada, after an embarrassing setback in the Senate.

View Article
China ‘very close’ to ending Australia wine tariffs, business chief says

The Chinese government is “very close” to lifting the heavy tariffs on Australian wine imports, a business lobby said, while tempering expectations about all producers returning to the market after…

View Article
https://www.ajot.com/images/uploads/article/China_soybean_chart.jpg
Gap in China’s soybean trade casts doubt on data reliability
View Article
https://www.ajot.com/images/uploads/article/White_corn.jpg
El Nino may see first S. Africa white-corn import since 2017
View Article