Taiwan’s Overall Exports Remain High Despite Stock Crash, but Bikes Suffer
Official statistics show that Taiwan’s overall export value hit a record high in July, up 11.7 percent from the previous month, to reach US$ 28.12 billion. Despite the stock crash and the sovereign debt crisis in the US and EU theres optimism about the country’s export growth. However, this doesnt go for bikes.
TAIPEI, Taiwan – Official statistics show that Taiwan’s overall export value hit a record high in July, up 11.7 percent from the previous month, to reach US$ 28.12 billion. Despite the stock crash and the sovereign debt crisis in the US and EU there’s optimism about the country’s export growth. However, this doesn’t go for bikes.
Taiwan’s bike export to Europe dropped with a big 20.6 percent unit-wise in the first half of the year. Only 1,462,500 bikes were shipped from the Taichung based factories to Europe. Next to high stock levels in Europe, the drop is also contributed to increased competition from countries like Bangladesh, Cambodia and Malaysia that have export duty free status for the EU under the general System of Preferences (GSP) regulations.
The drop in bike exports didn’t hamper Taiwan’s overall export which is forecasted to grow 15.9 percent for the whole of this year. According to Taiwan’s Ministry of Economic Affairs there’s the possibility of Taiwan’s export orders being affected by the gloomy economy in the US and in the EU; however, demand in China will compensate for the possible diminishing markets in the US and Europe.
With regard to the country’s bike export; for the first time in years also value-wise Taiwan’s bike export decreased. According to statistics compiled by Taiwan Bicycle Exporters’ Association (TBEA), the close to 1.5 million shipped bikes to Europe had a value of US$ 368 million; down 6.4% on the figure of the first half year of 2010.
In a recent Taiwan newspaper report TBEA chairman Tony Lo said that the growing European debt crisis and the harsh winter weather in Europe seen early this year, dampened local consumer demand for bikes.
In the newspaper report Tony Lo also stated that bilateral trade of bicycle parts between Taiwan and mainland China has significantly increased since the ECFA (Economic Cooperation Framework Agreement) signed in mid-2010 came into effect on Jan. 1, 2011, which will inject increasingly strong growth momentum into Taiwan`s bicycle industry in the near future.