SHORT-LIVED? Sales to Huawei would no longer boost exports, which could result in exports contracting this month, the Department of Statistics director-general said

Taipei Times
Date: Oct 08, 2020
By: Crystal Hsu / Staff reporter

Exports last month rose 9.4 percent year-on-year to US$30.7 billion, as demand for electronics increased ahead of the holiday season and China’s Huawei Technologies Co (華為) continued stockpiling supply before a US sales ban was implemented on Sept. 15, the Ministry of Finance said yesterday.

Buildup of holiday inventory would increase further this month as Apple Inc is slated to unveil new iPhones next week, but sales to Huawei would no longer boost exports as the Chinese firm cannot use products containing US technology, the ministry said.

“That could drive exports back into contraction with a 2 percent decline this month,” Department of Statistics Director-General Beatrice Tsai (蔡美娜) told a news conference in Taipei, adding that there are fewer working days this month, which would also be unfavorable.

Exports of electronic components soared 26.1 percent from a year earlier to US$13.7 billion, the second-highest volume in history, driven mainly by demand for chips used in 5G deployment and high-performance computing applications, Tsai said.    [FULL  STORY]