China’s military maneuvers in Taiwan are escalating diplomatic tensions between the two countries, following the recent visit of US Congresswoman Nancy Pelosi. Putting the trade of nearly 8,000 companies in the province of Alicante at risk with that region. Firms involved in manufacturing and capital goods are the ones most likely to be affected, as supply problems are feared.
China is the largest supplier to the Valencian Community, with an import volume of 4,700 million euros in 2021 and a cumulative increase of 68% over the past five years, and is the more numerous country in Asia along with Singapore. Valencian companies were founded. Therefore, the crisis between China and Taiwan puts the foreign trade of 15,000 companies in the Community at risk, importing or exporting to the Asian giant, 8 thousand of which belong to the province of Alicante.
According to the information provided by the Alicante Chamber of Commerce, chaired by Carlos Baño, there are 6,981 companies in the province that import 1,293 million euros, mainly from China, according to 2021 data. consumer goods, capital goods and semi-finished products. Regarding exports, the Asian giant has 615 sold for a total value of 114 million, in this case consumer products and, above all, raw materials.
Trade relations with Taiwan are much more cautious. While a total of 510 companies import 67 million euros, mainly automobile components and semi-finished products, 183 export 7.2 million euros, mainly food products and consumer products.
The Valencia Chamber of Commerce underlined that China’s external financial position benefits from a competitive and diversified sector. The increase in foreign direct investment inflows facilitated the opening of the market. In addition, the high national savings rates made it possible for companies to finance their investments. Likewise, the chamber agency, chaired by José Vicente Morata, states that “sectors that offer business opportunities to companies include agricultural equipment, railways, airports, urban infrastructure, the environment, construction, food products, fashion and high-end accessories, and luxury.” .
foreign trade in 2022
The latest statistical bulletin from the Valencia Community Regional Office of Commerce (January-May 2022) reveals that accumulated exports to China rose 11% year-on-year to €212.6 million. Meanwhile, imports rose to 4,422 million; ie 47.6% more than in 2021.
In the case of Taiwan, the Community’s exports to the aforementioned Asian country amounted to 51.2 million; 41.4% more than a year ago. Imports rose 52.5% more than between January and May 2021 to 82.5 million.
China’s military exercises in Taiwan, according to port sources Already forced the diversion of 240 cargo ships Covering routes between Southeast Asia and other routes around the world such as Europe and America. However, the grain bulk carriers MV Arizona and MV Sacura for export produced in Ukraine departed from Ukrainian ports on Monday and are on their way to Istanbul, where they will be inspected on their way to China.
The country that produces 69% of the world’s microchip production
Taiwan is the world’s leading supplier of semiconductor chips, producing 69% of world production. Its products include computers and mobile processors, so if factories stop, it means we won’t have new computers or mobile phones, spares or spares that will have disastrous global consequences. means the paralysis of the world market. According to Danny Moreno, chairman of the Spanish Semiconductor Industry Association (AESEMI) and CEO of Wiyo, the current situation has once again brought up the fact that Taiwan is a geopolitically unstable area. “In May, the Government has already announced an investment of 12,200 million euros to promote semiconductor production in the country, demonstrating that it is on the right track towards market independence.”