Taiwan beats China in the economy in 2020. The pandemic hit the economy of the world has struggled a lot. However, it has also changed the dimension of economies around the world.
Taiwan has become the best performing economy in Asia for 2020. The country grew at 2.98% rate edging out Vietnam which grew at 2.9%. China grew by 2.3% in 2020 amid the coronavirus. The last time this happened was way back in 1990, 30 years ago. In 1990, Taiwan grew at the rate of 5.5% against the 3.9% of China.
Both China and Taiwan are the export-based economy. However, the export of the semiconductors during the second half of the year in 2020 has offset the loss incurred during the pandemic. The economists expect Taiwan to grow by 5.2% in 2021. The country also managed to contain the COVID19 virus with effective lockdown and other strict measures.
Demand for the devices was at the peak during a pandemic. Taiwan is a powerhouse of semiconductors that are used to make chips and is required in almost every industry from car to mobile. In fact, there is a global shortage of semiconductors in the world recently. Ford also reduced production to accommodate the shortage.
Taiwan and South Korea account for almost 83% of global processor chip production and 70% of memory chip output. Economists easily put these two countries as the monopoly market of semiconductors in the world.
The Chinese Communist Party claims Taiwan, a democratic and self-ruled island as its own. However, the CCP has never ruled Taiwan. The Chinese often try to trespass into the Taiwanese area and threaten them with war. However, during the COVID19 pandemic, Taiwan has ensured large weapon sales from the US which was also at loggerhead with China when Donald Trump was president.