Thu, Jun 06, 2019 - Page 11 News List

Taiwan, S Korea benefit from trade dispute: UBS

By Kao Shih-ching  /  Staff reporter

Taiwan and South Korea have benefited from a US-China trade dispute, UBS Group AG said in a report, citing an increased market share for their electronics goods in the US since late last year.

“US customers seem to have bought more from China in advance of the September tax increase for stockpiling, but they have switched to [South] Korean and Taiwanese suppliers since then,” UBS said in the report dated Thursday last week.

The US and China have since July last year been locked in a tit-for-tat trade dispute, with Washington and Beijing slapping tariffs on tens of billions of US dollars of each other’s goods.

In the Chinese electronics industry, the printed circuit board (PCB) sector saw its US market share fall to less than 30 percent after October last year, compared with more than 60 percent in the prior two years, the report said.

In comparison, Taiwanese PCB manufacturers’ US market share jumped from 5 percent to nearly 20 percent in the past two quarters, while that of their South Korean counterparts rose to more than 30 percent, compared with about 12 percent in the prior two years, it said.

Mexico has also gained market share in the electronics, wind turbines and automotive parts sectors at China’s expense, while Vietnam has seen growing exports of handbags and modems, it added.

Overall, about one-fifth of Chinese goods have seen their market share in the US drop by more than 10 percent from October to March, the report said.

However, nearly half of Chinese exports have not been harmed by US tariffs, with their market share either increasing or falling by less than 1 percent, UBS global chief economist Paul Donovan said, adding that the tariffs have not achieved the results desired by the US administration.

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