Trade between Taiwan and China totaled US$28.6 billion (NT$972 billion) in the first eight months of this year -- a 22 percent increase from the same period last year, the Ministry of Economic Affairs reported yesterday.
Taiwanese exports to China totaled US$22 billion (NT$747 billion) during the period, up 19 percent, according to a ministry report. Imports from China rose 36 percent to US$6.6 billion (NT$225 billion), the report said.
The volume of trade made Taiwan China's second-largest source of imports after Japan. Taiwan is followed by South Korea and the US, the ministry said.
China's steady economic growth has made it an attractive export market for Taiwan and for many other countries, the report said.
But the ministry expressed worries about Taiwan's "export reliance" on the Chinese market, noting that exports to China accounted for 24.2 percent of Taiwan's overall exports.
Taiwan's government has encouraged companies to diversify their investments and do more business in places like Southeast Asia. But the lure of China's cheap labor and land is hard to resist.
The ministry said businesses should be cautious because of China's political hostility toward Taiwan and China's looming economic problems, such as rising unemployment.
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