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GROWING TOGETHER • Taiwan and Los Angeles County
EXECUTIVE SUMMARY
Overview of Report
The objective of this report is to describe the longestablished,
deep and growing ties between Taiwan
(officially, The Republic of China) and Los Angeles
County. The strong bond has greatly impacted the
development of both places. It is critical to highlight
how these ties and mutual benefits can be better
understood and appreciated as a foundation upon
which a brighter future can be built in order for both
places to continue this mutually beneficial relationship.
Historical Ties
Since the 1980’s, Taiwanese immigrants have contributed to
the economic and cultural landscape of California. According
to the most recent U.S. Census (2010), the cities of San Jose,
Sunnyvale and Santa Clara were home to 28,097 Taiwanese or
Taiwanese-Americans. In San Francisco, Oakland and Fremont,
Taiwanese-Americans number 27,568 individuals. However,
the majority of the Taiwanese and Taiwanese-American
community is concentrated in Los Angeles County, which has
45,800 persons who are Taiwanese or of Taiwanese decent.
Within Los Angeles County, the Taiwanese have settled mainly
in the San Gabriel Valley. In Monterey Park, a part of the
city has become known as “Little Taipei.” Throughout these
Taiwanese communities one can find Taiwanese temples, social
organizations, restaurants and traditional markets.
The Taiwanese Economy
The Taiwanese economic miracle refers to the rapid economic
development of Taiwan that began earlier in the last century.
Taiwan is one of the “Four Asian Tigers”, a group of economies
that also includes Singapore, Hong Kong and South Korea.
Taiwan’s role in the global economy was transformed with
the advent of globalization. Economic globalization altered the
way international business was conducted. Global production
methods were revolutionized as a direct result of new
technology and reduced transportation costs. International
trade and foreign direct investment increased substantially, and
maximizing global supply chain efficiencies became the highest
priority for global companies. As a result, Taiwan became a vital
participant in the global economy, dominating the information
and communications technologies (ICT), and electronics
industries. Taiwan has solidified its place in the high-tech space
of the global economy over the past 20 years to become an
instrumental part of global supply chains. Due to its strategic
location, Taiwan is a hub for East Asian transportation and
the logistics.
Trade Ties
California and Los Angeles County have been uniquely
positioned to take advantage of Taiwan’s surging economic
development over the past sixty years due to the state’s
beneficial geographical location. Taiwan was California’s sixth
largest export market in 2013 (when including Hong Kong in
the Mainland China total), with exports to Taiwan at $7.5 billion.
Exports to Taiwan grew by over 18% from 2012 to 2013.
California has the highest amount of exports to Taiwan of all the
states in the U.S.
Taiwan was the LACD’s fourth largest trading partner in 2013
with total two-way trade valued at $15.8 billion, up by 2.4%
from 2012. Total Taiwanese imports unloaded (district of
unlading – general imports) in the LACD were valued at $8.7
billion (#5). Total U.S. exports to Taiwan through the LACD
were $7.1 billion (#5), for a LACD trade deficit of $1.5 billion.
Taiwan’s import-to-export ratio was 1.2, down from 1.4 in 2012.
From a volume or container perspective, total loaded inbound
and outbound TEUs declined by 3.5% in 2013 moving from
626,334 to 604,385 TEUs.
Investment Ties
In a comprehensive multi-country study of foreign direct
investment in Los Angeles County that was completed in
2008, the LAEDC identified 127 Taiwanese-owned business
establishments in 2007. That number increased by 30% since
2007 to 164 establishments according to LAEDC research
conducted in 2013-2014, making Taiwan one of the ten largest
LOS ANGELES COUNTY ECONOMIC DEVELOPMENT CORPORATION 1