China’s impact on Asian economic growth has expanded in relation to that of the US in the past five years, a study showed yesterday.
The study by Standard Chartered Bank used regression analysis to examine the relative impacts key economic statistics in China and the US have had on 10 countries and regions in Asia, including Taiwan, between 2003 and this year.
According to the study, US growth has been significant to a lot of Asian countries during the 10-year period, but over the past five years China has grown in importance relative to the US.
For instance, every 1 percentage point increase or decrease in the US economy made a difference of nearly 50 percent to Taiwan’s growth from the first quarter of 2008 to the first quarter of this year, the study shows.
However, every 1 percentage point increase or decrease in China’s economy made a difference of 80 percent to Taiwan’s growth during the same period.
The study also found growing economic ties between China and Taiwan, Hong Kong, Singapore and South Korea in recent years. The US economy, on the other hand, has had a bigger impact on India, the Philippines, Indonesia and Thailand.
In 2005, Taiwan exported 15 percent of its goods to the US and 22 percent to China.
Taiwanese exports to China were up to 27 percent last year, while exports to the US were down to 12 percent, the study showed.
Among the 10 Asian countries and regions studied, eight had a higher trade volume with China than with the US last year.