U.S. replaces China as Taiwan's largest machinery market in 2024

Taipei, July 24 (CNA) The United States overtook China and Hong Kong for the first time in 2024 as the largest buyer of Taiwan-made machinery, due in part to China developing its own machinery sector, according to a recent Ministry of Finance (MOF) industry report.

Outbound sales of Taiwan's machinery to the U.S. hit US$5.8 billion in 2024, up 6.1 percent from a year earlier to account for 24.2 percent of Taiwan's total, while exports to China and Hong Kong fell 1.5 percent year-on-year to US$5.7 billion, making up 23.7 percent of the total.

During the 2019-2024 period, machinery bought by the U.S. soared 24.5 percent, while sales to China and Hong Kong fell 16.8 percent, propelling the U.S. into the top spot, the report said.

In 2019, China and Hong Kong accounted for 29.3 percent of Taiwan's total machinery exports, relatively close to its traditional share of 30 percent, while the U.S. represented a 19.9 percent share, according to the report.

Taiwan has seen its machinery sales to China fall gradually due in part to China's efforts to develop its own machinery industry to replace overseas products.

In addition, escalating trade friction between Beijing and Washington and the advocacy for "Made in the U.S.A." has prompted many Taiwanese machinery makers to set their sights on the American market, the report said.

The falling sales to China reflected a broader decline of the sector in the past two years.

With global economic growth moderating and geopolitical unease and escalating competition from neighboring countries rising, Taiwan's machinery exports fell to a new three-year low of US$24.1 billion in 2024, the report showed.

The 2024 figure was down 0.4 percent from 2023 and about 15.5 percent from 2022, when machinery exports hit a new high of US$28.6 billion.

In addition, while machinery remained the fourth largest product category among Taiwan's exports in 2024, the ratio of machinery sales to total exports fell to a historical low of 5.1 percent, down from 5.6 percent in 2023, the report showed.

While outbound sales in the first half of this year rebounded, up 4.3 percent from a year earlier, the MOF said, it remained uncertain whether the uptrend will continue, given the trade tensions that exist between the U.S. and China.