Taiwan’s Economic Miracle

Taiwan’s economic ascent is a compelling narrative of innovation and strategic global integration. From inventing the DVD and bubble tea to dominating the semiconductor market, Taiwan consistently exceeds expectations.

Chaney Ho, chair of Advantech, highlights the transformative journey:

Taiwan produces 92% of the world’s semiconductors as well as being a leader in AI [artificial intelligence], IT [data technology] and renewable energy.It all started when Japan and the USA invested in Taiwan in the 1970s and other foreign investors followed. It all started with the education system, with the emphasis on skills. Yes,the foreign investors came here,developed Taiwan,but the Taiwanese had already provided the education system.
Chaney Ho, Chair of Advantech

This transformation was fueled by strategic foreign investment and a focus on education, enabling Taiwan to become a vital supply chain partner in the global economy.

Democracy and Cultural Influences

Taiwan is an open democracy with presidential and legislative elections every four years. Its diverse population, a blend of Taiwanese indigenous peoples and Chinese heritage, reflects influences from Japan, the Netherlands, Portugal, and Spain.

Ambassador Francois Wu, the deputy minister for foreign affairs, emphasizes Taiwan’s unique strength:

We are very accomplished with our European origin because in the past we have so many Taiwanese who studied in Europe and came back and shared the experience, trying to bring the good parts of Europe and mixing them with the good parts of Asia.
Ambassador Francois Wu, deputy Minister for Foreign Affairs

This blend of cultural influences enriches Taiwan’s identity and strengthens its global perspective.

Trade and Global connectivity

International trade is the cornerstone of Taiwan’s economy, driven by its comparative advantage in semiconductors and renewable energy. Taiwan is a member of the World Trade Institution (WTO) and Asia-Pacific Economic Cooperation (APEC) and has applied to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Ambassador Wu underscores the importance of trade:

It’s crucial for Taiwan to be a member of the TPP [the Trans-Pacific Partnership] so we can grow trade. If we were a normal recognised state, Taiwan would be a member of the G20 in terms of GDP per capita and trade. Taiwan’s GDP is more than a quarter of the French, we trade more than Russia, we trade more than Brazil, the world needs Taiwan to have a better trade system.
Ambassador Francois Wu,Deputy Minister for Foreign Affairs

Despite not being a recognized state by many countries,Taiwan’s economic influence is undeniable,surpassing that of many G20 nations in terms of trade volume.

Opportunities for Australia

Australia and Taiwan share highly complementary economies. In 2023, Taiwan was Australia’s ninth-largest two-way goods and services trading partner, with trade valued at $33.6 billion [[3]].

Christopher Lim of Austrade highlights the diverse business opportunities:

Taiwan is a terrific place to do business. I think many Australians may think of Taiwan as a tourist destination, but there are just so many wonderful business opportunities.Of course, for the regular sectors like agri-food and education in tourism, it’s a fantastic market.But there are fantastic new areas such as renewable energy and hydrogen and the like, which are actually so important to Taiwan and Australia. When I first came to Taiwan, I noticed that clean energy was very important, the clean surroundings, the clean air that Taiwan has compared with other neighbours.
Christopher Lim,Austrade

Thes opportunities extend beyond traditional sectors to include renewable energy and clean technology,aligning with Taiwan’s commitment to environmental sustainability.

The Case for an Australia-Taiwan Free Trade Agreement

Taiwan is the only one of Australia’s top 10 trading partners without a free trade agreement (FTA). An FTA could substantially boost trade and investment between the two economies.

Juna Ferrett, Queensland’s commissioner to Taiwan, notes the synergies between the two regions:

Queensland has strengths in biotech, quantum computing, data centres and renewable energy that match well with Taiwan’s strengths. We have some great queensland companies in Taiwan including Audeara in the healthcare space, who work with their taiwanese partner Clinico, and Green Harvest, who work in green hydrogen.
Juna Ferrett, Queensland’s Commissioner to Taiwan

Regardless of a formal FTA, increased collaboration in trade, investment, education, and technology can benefit both nations.

Taiwan: A Global Citizen

Taiwan’s commitment to democracy, cultural diversity, and global engagement positions it as a responsible global citizen. Its exemplary handling of health crises, such as SARS and COVID-19, underscores the need for its inclusion in international organizations like the World Health Organization (WHO).

Taiwan’s dedication to environmental sustainability further exemplifies its role as a global leader.

FAQ: Taiwan’s Economy and Trade

• What is Taiwan’s GDP?

  Taiwan’s GDP is nearly $760 billion.

• What is Taiwan’s main economic strength?

  Taiwan is a global leader in the semiconductor industry.

• Is Taiwan a member of the G20?

  no, but if it were a recognized state, its GDP per capita would qualify it for G20 membership.

• What trade opportunities exist between Australia and Taiwan?

  Opportunities exist in agri-food, education, tourism, renewable energy, and hydrogen.

• Does australia have a free trade agreement with Taiwan?

  No, Taiwan is the only one of Australia’s top 10 trading partners without an FTA.