The Escalating Tension Between Mainland China and Japan Is Prompting Some Manufacturers

Taipei, Oct. 16, 2012 (CENS)--The escalating tension between mainland China and Japan is prompting some mainland Chinese manufacturers to embrace for Taiwan's machine-tool makers as alternative to Japanese suppliers, likely helping push up the Taiwan's exports to a new high this year.

According to sectary general of the Taiwan Association of Machinery Industry (TAMI), J.C. Wang, Taiwan's exports of machine tools are likely to soar past 2011's US$4 billion, to US$4.4-4.5 billion this year, partly thanks to the tension between the mainland and Japan. He noted that some mainland Chinese manufacturers are boycotting Japan-made machine tools and instead turning to Taiwan's manufacturers for the equipment.

TAMI's latest statistics show that Taiwan's machine-tool exports to the mainland increase month by month in the third quarter, making the exports post an annual growth of 10.5% in first three quarters of this year.

In September alone, Taiwan's machine-tool exports came to US$384 million, surging 20.3% year on year. The exports amounted to US$3.25 billion in the Jan.-Sept. period.

Wang pointed out that increased orders from the mainland have eased the worries of Taiwan's machine tool makers about bleak business outlook for this year. He said that Taiwan exports to the mainland have swung to growth from decrease since the beginning of the third quarter, with revenue surging 14.8% in July, 18.4% in August and 55.7% in September. In the Jan.-Sept. period, Taiwan exported 3.1% more machine tools to the mainland than a year earlier in terms of revenue.

Wang noted that the mainland's machine tool market remains robust despite the slowdown of the world's No.2 economy. Taiwan's equipment suppliers, he said, could win increased orders from the mainland as long as they introduce specific machines required by the mainland's aircraft-building, energy-equipment and car-making industries.

However, the mainland's market for multi-tasking types of machine tools remains weak, he noted.