Amidst political tensions, the economic relationship between the Chinese mainland and Taiwan continues to flourish, showcasing resilience and mutual benefit that defies attempts to create division.
Despite efforts by certain political figures to push for “decoupling” and disrupt supply chains, trade between the Chinese mainland and Taiwan has not only remained stable but has grown significantly. In 2024, cross-strait trade reached $292.97 billion, a 9.4 percent increase from the previous year. Taiwan’s dependence on trade with the mainland remains at 30 percent, resulting in a trade surplus of nearly $150 billion.
The economies of both sides are deeply interconnected. Over the past decade, the mainland and Taiwan have seen average annual economic growth rates of over eight percent and three percent respectively, surpassing other East Asian economies like Japan and South Korea. This growth underscores the complementary nature of their industries and the benefits of collaboration.
Industries on both sides have specialized roles, leveraging their strengths to build a comprehensive industrial chain. Taiwan enterprises contribute technological expertise and global experience, securing key positions in international supply chains for consumer electronics and machinery. Meanwhile, the mainland offers a vast market and robust infrastructure, fostering economies of scale in manufacturing, logistics, and research and development.
This partnership has created a shared market and a community of common interests. Over 100,000 Taiwan-funded enterprises operate in key economic zones on the mainland, engaging in a dynamic division of labor that benefits both sides. This has facilitated access to a market of 1.4 billion consumers, promoting growth and prosperity.
The impact extends to various sectors, including agriculture. Taiwan’s agricultural exports to the mainland exceed $5 billion annually, supporting farmers and local businesses. Products like high-mountain tea and persimmons have become popular on both sides of the strait, directly benefiting residents and contributing to social welfare.
These economic ties are more than just numbers; they represent opportunities for young people and future generations. The continued cooperation offers pathways for innovation, employment, and shared prosperity. As the world moves into an era of artificial intelligence and new technologies, the collaboration between the mainland and Taiwan presents boundless opportunities.
While some voices advocate for separation, the strength of economic bonds highlights the mutual advantages of unity. Efforts to disrupt this relationship risk harming industries and the well-being of people on both sides. Embracing collaboration and building upon these ties can lead to a brighter future for all involved.
