[Asia Economy Reporter Choi Eun-young] Taiwan, which is rated as having the best COVID-19 prevention measures worldwide, is expected to record an economic growth rate surpassing that of mainland China for the first time in 29 years.
On the 12th, Hong Kong's South China Morning Post (SCMP) reported, "The Taiwanese government raised its annual economic growth forecast to 2.5% at the end of last month," adding, "The mainland Chinese government has not yet announced its economic growth target for this year, but experts expect it to be around 2%."
If economists' forecasts prove accurate, Taiwan will achieve a higher growth rate than mainland China for the first time since 1991, marking 29 years.
In the past, Taiwan, along with South Korea, Singapore, and Hong Kong, was known as one of the "Four Asian Tigers" and experienced advanced economic development earlier than mainland China, but its growth rate gradually slowed down thereafter.
On the other hand, China adopted reform and opening-up policies in 1978 and entered a period of rapid growth after 1991, consistently surpassing Taiwan's economic growth rate. Until last year, just before the COVID-19 outbreak, China recorded a 6.1% economic growth rate, while Taiwan's growth rate was only 2.73%.
However, the COVID-19 pandemic created an opportunity for Taiwan to overtake. Taiwan was among the first in the world to block entry from China immediately after the outbreak in Wuhan, effectively preventing the spread of COVID-19 through swift quarantine measures. As of the 10th, the cumulative confirmed cases were 724, of which 632 were imported cases. The death toll was only 7.
Thanks to successful quarantine efforts, Taiwan did not experience any economic crisis caused by COVID-19; instead, it enjoyed a "COVID-19 boom." Frederick Neumann, co-head of HSBC Asia Economic Research Institute, said, "The demand for laptops and other electronic devices surged due to the spread of remote work," adding, "Taiwanese companies directly benefited."
Moreover, the US-China trade war was good news for Taiwan. Chinese companies blacklisted by the US government, such as Huawei, placed large orders for semiconductors and other key components from Taiwanese companies like TSMC. SCMP reported that by November, Taiwan's semiconductor exports to China amounted to $920 million, accounting for one-third of its total exports.
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