China still Taiwan's largest market

China remained Taiwan's largest market in the first half of this year, absorbing 23.8 percent of the nation's total exports, official data showed yesterday.

Taiwan recorded a surplus of US$11.29 billion with China out of total trade of US$18.39 billion between the two political rivals in the first half, the Board of Foreign Trade (BOFT) said.

The surplus was up 30.7 percent from a year earlier, the BOFT said.

Exports to China rose 28.8 percent from a year earlier to US$14.84 billion while imports rose 23.1 percent to US$3.55 billion.

China has been Taiwan's largest export market since November, replacing the US in the top spot. China accounted for 18.3 percent of Taiwan's exports in the first half of last year.

Taiwan is now the China's second largest supplier of imports after Japan.

Taiwan and China still ban direct trade links and shipments are routed through other territories and countries, mainly Hong Kong.

The surge in exports to China was mainly due to strong demand for components for information technology products as more international technology firms were set up assembly lines on the mainland.

Taiwan-invested notebook computer and thin panel firms have also boosted production in China to 24 percent and 61 percent of their total production respectively. This is up from 5.2 percent for notebook computer makers and 28 percent for thin panel display screen makers in the same period last year, the BOFT said.

Polls have showed China remains the most favored investment destination for Taiwanese firms. Taipei authorities earlier this month lifted a ban on direct investment to China.

It is estimated Taiwan businessmen have poured some US$70 billion of investment into China since Taipei allowed civilian exchanges in 1987.