Facing Challenges from Korea, Taiwanese Fastener Industry Appeals for Signing Goods Trade Agreement with China

After the announcement of a free trade agreement between Korea and China, Taiwanese fastener industry may feel frustrated in tapping into Chinese high-end fastener market. Chairman Joe Chen of Taiwan Industrial Fasteners Institute appeals for the quick negotiation and signing of a goods trade agreement between Taiwan and China to prevent the hard-to-get business opportunity from being taken away by Korean competitors first. Chen added, the total volume of Taiwanese fastener exports this year is expected to be over 1.55 million tons, the highest record in history. 90% of the total fastener production in Taiwan is for export. Taiwanese fastener market players are very active and vigorous and are also eager to tap into the supply chain of automotive fasteners with high added value. They now target China which has an annual car production of 20 million units.

Chen said, Korea exports only over 100 thousand tons of fasteners, equivalent to only 1/10 of Taiwan’s total export volume. However, Korea produces about 7 million units of cars and its car manufacturing industry is more vigorous than Taiwan’s car manufacturing industry. 60% of the fasteners produced in Korea are for the use in cars, making Korea become the main competitor of Taiwan in the export of automotive fasteners. Chen also said, automotive fasteners have to be in high quality and the profitability is quite good, that is why so many Taiwanese fastener companies turn to the R&D of automotive fasteners. The biggest market at present is absolutely China. It is a shame that the opportunity of Taiwan is now taken away by Korea, which can thus enjoy the exemption of tariff on its fastener exports to China due to the agreement.

Therefore, the goods trade agreement between Taiwan and China should be signed as soon as possible in order to eliminate the tariff on Taiwanese automotive fasteners exported to China. The quality and technical level of Taiwanese automotive fasteners are not inferior to those of Korea, and the opportunity must be taken back.