Taiwan and Los Angeles County: Growing Together

Transcription

1 Taiwan and Los Angeles County: Growing Together LAEDC/WTC-LA International Trade Outlook June 3, 2015 Ferdinando Nando Guerra International Economist and LAEDC Consultant

2 Taiwan & Los Angeles County Overview of the Report Key Findings & Recommendations Executive Summary Historical Ties The Taiwanese Economy Trade Ties Investment Ties Business Ties Personal Ties The Future and Conclusions Kyser Center for Economic Research

3 Key Economic Findings Los Angeles County is America s top international trade gateway to Taiwan and Taiwan s top gateway to the U.S. Taiwan is the Los Angeles Customs District s (LACD s) #4 trading partner A significant amount of Chinese imports arriving at our local ports are a product of Taiwanese manufacturing occurring on the Mainland Investment into Los Angeles County from Taiwan has increased by 30% over the past 6 years, with Taiwan becoming one of Los Angeles County s top ten largest investors

4 Los Angeles County Largest Taiwanese Population Largest Number of Taiwanese Students Largest Number of Taiwanese Companies Largest Recipient of Taiwanese Tourists Largest Recipient of Taiwanese Investment

5 Taiwanese Economic Miracle 12% 10% 8% 6% 4% 2% 0% -2% -4% Real GDP -- Annual Percent Change Forecast Source: IMF WEO

6 Taiwanese Economy* GDP - $489 Billion* (25 th Largest Economy in the World) or $930 Billion** (20 th Largest Economy in the World) GDP Per Capita -- $22,600* or GDP Per Capita -- $40,000** *Based on using Market Exchange Rates (MER) -- ** Based on using Purchasing Power Parity (PPP) exchange rates Source: IMF Kyser Center for Economic Research

7 Taiwanese Exports 2003 to 2014 $350 $300 $250 $200 $150 $151 $182 $198 $224 $247 $256 $204 $275 $ Billions $308 $301 $306 $313 $100 $50 $ Source: Taiwanese Bureau of Foreign Trade Trade Statistics Kyser Center for Economic Research

8 U.S. 2-Way Trade with Taiwan $80 $70 $60 $50 $40 $30 $20 $10 $0 Source: USA Trade Online $ Billions $67 $68 $64 $61 $61 $62 $63 $63 $56 $56 $49 $ Kyser Center for Economic Research

9 CA 2-Way Trade with Taiwan $22 $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 $16.2 Source: USA Trade Online $12.2 $16.3 $17.0 $17.5 $18.4 $ Billions $ Kyser Center for Economic Research

10 LACD 2-Way Trade with Taiwan $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 Source: USA Trade Online $ Billions $17.1 $15.3 $15.6 $15.6 $15.8 $13.8 $ Kyser Center for Economic Research

11 LACD Taiwan Trade Ties 2014 LACD s #4 trading partner Total 2-Way Trade: $17.1 Billion (26% of U.S.) LACD Imports from Taiwan: $9.5 Billion (24% of U.S.) LACD Exports to Taiwan: $7.6 Billion (28% of U.S.) Taiwan s #1 trading partner among U.S. Customs Districts

12 LACD Top 5 Import Sources, 2014 Billions of U.S.$ $140.8 $25.7 $12.9 $11.1 $9.5 China* Japan South Korea Vietnam Taiwan Source: USA Trade Online *China includes Hong Kong and Macau Kyser Center for Economic Research

13 LACD Top 5 Export Destinations, 2014 Billions of U.S.$ $35.3 $14.7 $10.9 $7.5 $7.5 China* Japan South Korea Taiwan Australia Source: USA Trade Online -- *China includes Hong Kong and Macau Kyser Center for Economic Research

14 Los Angeles Metropolitan Area Exports Top 5 Exports to Taiwan ($ millions) 1. Royalties 2. Computers & Electronics 3. Chemicals 4. Machinery 5. Transportation Equipment Source: Brookings Institution, Export Nation $512 $328 $149 $135 $92 Kyser Center for Economic Research

15 Taiwan and Los Angeles County Key Trade Linkages Hi-Tech Manufacturing Technology and Innovation (Electronic Machinery & Equipment, Computer Products and Medical Instruments) Plastics Entertainment Freight and Port Services Pharmaceuticals

16 Taiwanese Investment in L.A. County Primarily in the Following Industries: Wholesale Trade, Finance & Insurance and Manufacturing Located in the Following Cities: City of Industry and the City of Los Angeles Key Companies Include: Sinopac, CTBC and First Financial Holdings China Airlines and EVA Air Evergreen Shipping, Wan Hai Lines and Yang Ming Transport Tatung Company, Microtek and Axiom Technology

17 Taiwan s Role in the Global Economy Key Player in Asia-Pacific Regional Supply Chains Hi-Tech and Electronics Superpower Key Player in Chinese Exports Hub of Asian Transportation Logistics Center of East Asia

18 Why Invest in Taiwan Ideal Location Hub of Asia and Gateway to China & ASEAN Well-Developed Industry Clusters High Tech Focus Important Role in Asia-Pacific Supply Chains Strong R&D and Innovation Capabilities Abundance of Skilled Labor Population with High Purchasing Power Excellent Infrastructure and Investment Environment

19 The Future of the Taiwanese Economy Key Challenges Heavy Reliance on Exports and Lack of Economic Diversity Dependence on Chinese Market Competition from Korea and Japan Key Opportunities Expansion of FTA s and Potential of TPP ECFA and Ties to Mainland China Continued Support of R&D Services Sector

20 Importance of the Trans-Pacific Partnership (TPP) TPP needs Taiwan and Taiwan needs the TPP Mutually Beneficial Relationship Would Allow for Greater Efficiencies Would Result in Greater Economic Growth for the Entire Region

21 Taiwan and Los Angeles County So Much Potential Key Opportunities Going Green Energy, Electric Vehicles and Buildings Biotechnology Healthcare and Medical Equipment Tourism U.S.-Taiwan TIFA and the TPP

22 L.A., Taiwan and Latin America Taiwanese Companies Should Take Advantage of Existing Resources: Personal Ties (Educational and Cultural Ties) Taiwanese population Latino population Network Ties (Organizations and Associations) Trade, Investment, and Business Ties Existing FTA s NAFTA, CAFTA, Chile, Peru, KORUS, Colombia, and Panama Future FTA s Trans-Pacific Partnership (TPP) and Taiwan with Latin America Panama Canal Expansion

23 L.A. County as a Hub and Gateway - Why? Cultural Links Diversity of Commerce and Economy Huge Market Target Industries Infrastructure Geography and Trade Lanes Air Cargo and Passenger Services Educational Ties and A Highly Skilled Labor Force

24 The Future of the Relationship Key Sectors Green/Clean Tech, Electronics, Creative Industries, Biotech, Entertainment, Aerospace, Medical Devices, Tourism, Machinery, and Pharmaceuticals Key Challenges Key Opportunities Recommendations Personal Ties, Investment, Trade, Tourism, etc.

25 Thank You Very Much! Contact Information Cell: