Taiwan may benefit from China power crisis: Central Bank

Taiwan may stand to make gains from orders being shifted to the country if the power curbs in China lead to exports being impacted, Taiwan Central Bank Governor Yang Chin-long stated on Thursday.

The world’s engine of economic growth is struggling with power cuts and electricity rationing after the combination of tight coal supplies, stricter emission standards, and strong manufacturing demand has increased the price of coal, China’s largest source of electricity, to new records.

Answering questions from lawmakers in parliament, Yang said that if China’s power crunch caused its exports to perform badly, there would be an “order transfer effect” for Taiwan, which means that manufacturers could shift production to the country.

Taiwan’s central bank is keeping a close watch on the impact of China’s electricity problems on financial markets.

The country’s export-dependent and tech-heavy economy have benefited during the coronavirus pandemic due to an increased demand for equipment like laptops and tablets to support the work from home and online learning set up around the world.