The nation’s exports last month declined 2 percent year-on-year to US$27 billion, as cheaper crude oil prices dampened sales of products heavily reliant on raw materials, overshadowing shipments of electronic components, the Ministry of Finance said yesterday.
It was the third straight month the critical economic gauge remained negative and exports might not improve this month or even for the rest of this year, Department of Statistics Director-General Beatrice Tsai (蔡美娜) told a news conference in Taipei.
“The COVID-19 pandemic continued to weigh on sales of products using raw materials, as seen in a 57.3 percent plunge in exports of mineral products,” Tsai said.
Photo: David Chang, EPA-EFE
Likewise, shipments of base metals, plastic and chemical products dropped 15.2 percent, 19.9 percent and 15.6 percent year-on-year respectively, the ministry said in a report.
Exports of textile products slumped 35.1 percent, the second-worst fall since records began, as inventory remained high amid lockdowns in ASEAN and other markets, Tsai said.
However, shipments of electronic components continued to gain traction, logging a 13.2 percent increase to a record high of US$10.24 billion on fast-growing 5G deployment, as well as remote working and learning, she said.
Exports of semiconductors increased 14.2 percent to US$9.2 billion, while those of information and communications products rose 10.9 percent to US$3.95 billion, she said.
Remote learning and working from home might continue at many organizations and companies, boosting demand for data centers, servers and laptops, Tsai said.
Meanwhile, international technology giants pressed ahead with the launch of 5G wireless gadgets, despite the COVID-19 pandemic, providing business opportunities for local companies in their supply chains, she said.
“If the reopening of the economies in Europe and the US goes well, the electronics industry could perform better than expected in the second half of the year,” Singapore-based Barclays Bank PLC economist Angela Hsieh (謝涵涵) said.
“The biggest uncertainty comes from US-China relations, but the impact of that seems limited so far,” Hsieh added.
Exports to China and the US rose the most, gaining 10.6 percent and 9.3 percent respectively, while China accounted for 44.9 percent of overall exports, the ministry said.
Imports fell 3.5 percent to US$22.28 billion, mainly dragged down by cheaper crude oil prices that plummeted 63 percent year-on-year, Tsai said.
However, imports of capital equipment rose 14.2 percent to US$3.7 billion, as local firms, especially semiconductor makers, stood by their plans to upgrade and expand, she said.
The nation posted a trade surplus of US$4.72 billion for last month, a 5.6 percent increase from a year earlier.
The outlook is unlikely to become clear until global economies emerge from the pandemic, Tsai said, adding that exports would decline 2 to 5 percent this month.
That would suggest a decline in second-quarter exports from a year earlier.
In the first five months of this year, cumulative exports rose 1.5 percent to US$130.91 billion, while cumulative imports increased 1.4 percent to US$114.4 billion, creating a trade surplus of US$16.51 billion, the report showed.
Additional reporting by Bloomberg
Nissan Motor Co has agreed to sell its global headquarters in Yokohama for ￥97 billion (US$630 million) to a group sponsored by Taiwanese autoparts maker Minth Group (敏實集團), as the struggling automaker seeks to shore up its financial position. The acquisition is led by a special purchase company managed by KJR Management Ltd, a Japanese real-estate unit of private equity giant KKR & Co, people familiar with the matter said. KJR said it would act as asset manager together with Mizuho Real Estate Management Co. Nissan is undergoing a broad cost-cutting campaign by eliminating jobs and shuttering plants as it grapples
TEMPORARY TRUCE: China has made concessions to ease rare earth trade controls, among others, while Washington holds fire on a 100% tariff on all Chinese goods China is effectively suspending implementation of additional export controls on rare earth metals and terminating investigations targeting US companies in the semiconductor supply chain, the White House announced. The White House on Saturday issued a fact sheet outlining some details of the trade pact agreed to earlier in the week by US President Donald Trump and Chinese President Xi Jinping (習近平) that aimed to ease tensions between the world’s two largest economies. Under the deal, China is to issue general licenses valid for exports of rare earths, gallium, germanium, antimony and graphite “for the benefit of US end users and their suppliers
Dutch chipmaker Nexperia BV’s China unit yesterday said that it had established sufficient inventories of finished goods and works-in-progress, and that its supply chain remained secure and stable after its parent halted wafer supplies. The Dutch company suspended supplies of wafers to its Chinese assembly plant a week ago, calling it “a direct consequence of the local management’s recent failure to comply with the agreed contractual payment terms,” Reuters reported on Friday last week. Its China unit called Nexperia’s suspension “unilateral” and “extremely irresponsible,” adding that the Dutch parent’s claim about contractual payment was “misleading and highly deceptive,” according to a statement
The Chinese government has issued guidance requiring new data center projects that have received any state funds to only use domestically made artificial intelligence (AI) chips, two sources familiar with the matter told Reuters. In recent weeks, Chinese regulatory authorities have ordered such data centers that are less than 30 percent complete to remove all installed foreign chips, or cancel plans to purchase them, while projects in a more advanced stage would be decided on a case-by-case basis, the sources said. The move could represent one of China’s most aggressive steps yet to eliminate foreign technology from its critical infrastructure amid a
RSS