The nation’s machinery exports last quarter declined 7.9 percent year-on-year to US$4.31 billion from US$4.68 billion, with analysts pointing to the depreciation of the yen and Chinese government moves to curb inflation.
In its latest data released on Monday, the Taiwan Association of Machinery Industry said exports to the nation’s four largest markets all fell last quarter year-on-year.
Shipments to China declined 9.9 percent to US$1.18 billion from the previous year and those to the US fell 7 percent to US$681.15 million.
Exports to Japan declined 2.7 percent to US$282.74 million from the previous year, while those to Thailand declined 15.1 percent to US$119.29 million, the association said.
Taiwan Institute of Economic Research (TIER, 台經院) analyst Johnson Wang (王忠慶) said the decline in machinery exports to the other side of the Taiwan Strait was because of China’s economic slowdown.
“The Chinese government is now focusing more on battling inflation and increasing the purchasing power of its people, rather than chasing economic growth,” Wang said by telephone yesterday.
The Chinese government also implemented an import substitution policy in April last year by reducing tax deductions on machinery imports, which also slowed down demand for Taiwan-made products, he said.
However, shipments may increase this quarter as inflationary pressures decrease in China and its government takes a more aggressive role in trying to boost the economy, he said.
Wang said the decline in exports to the US was mainly due to yen depreciation, causing US companies to purchase Japanese products rather than those made in Taiwan.