TAIPEI: High tariffs on some items and lengthy customs clearance processes remain among the greatest challenges faced by Taiwanese exporters to China, said Peter Huang, President & CEO of the Taiwan External Trade Development Council (TAITRA).
Speaking at the Cross-Strait CEO Summit in Taipei, he said that growth momentum of Taiwanese products in China has stagnated while profits have been eroded by the hurdles.
Despite the complications, Taiwanese products are well received across the strait. Over 60% of Chinese consumers are willing to spend an additional 30% for Taiwan-made products, said Ho Shih-chun, chairman of Trade-van Information Services, an electronic data interchange company that provides automated customs clearing services.
The many hurdles mean that consumers are often left disappointed to learn that the Taiwanese products they see at trade shows are not readily available on store shelves.
Ho recommended establishing an expedited customs clearance system to facilitate the flow of goods on both sides and proposed setting up a Taiwan display center in Shanghai’s free trade zone to promote and showcase products.
Taiwan’s exports to China would be greatly enhanced by combining online platforms and brick-and-mortar sales locations, said Ho. Lee Xiaohong, a manager at the Shanghai free trade zone, said the zone hopes to become an entry point for Taiwanese companies as it will set an example to be replicated in other free trade zones throughout China.