A study on the growth of Britain”s service exports to Taiwan in 2018

Type : Research Projects
Name : A study on the growth of Britain''s service exports to Taiwan in 2018
ID : PR2256
Author : Jing, Shin-Tsyr
Publication Date : 2020.05

This study is based on the data released by the Office for National Statistics of the United Kingdom on January 22, 2020. It focuses on the overall and 12 main service items, namely manufacturing services, maintenance and repair services, transportation, travel, construction, insurance and pension, financial, intellectual property, telecommunications-computer and information services, other business services, personal-culture and recreational, government services, conduct data analysis. The definition of 12 Main service items, please see Annex 1. In terms of service exports from the United Kingdom to Taiwan, total service trade exports reached 1.274 billion pounds in 2018, with an annual growth rate of 38.3%. The items with the largest growth in the value of services exports from the United Kingdom to Taiwan in 2018 are intellectual property and computer services. The service exports of these two items are also major growth items for the UK to Asian countries (excluding Taiwan) and the world. Similarly, the OECD’s statistics on international trade in services also show a trend of growth in British service exports to Taiwan. In order to connect and understand the changes in UK international service trade statistics, this study conducted a questionnaire survey on specific listed companies in Taiwan, to understand whether listed companies have increased their purchases (sales) with UK and to confirm which industries have increased their purchases (sales) with UK . The response from the Taiwan company found that the majority of those who did not trade with the UK. Among the companies that trade with the United Kingdom, more companies sell to the UK than companies that purchase from the UK. When inquiring about the opinions of the relevant government units and public associations in Taiwan, they have not been able to obtain affirmative opinions, that is, the items with the largest growth in the value of services exports from the United Kingdom to Taiwan in 2018 are indeed intellectual property and computer services. The Central Bank of Taiwan stated that although the balance of payments has export statistics for intellectual property rights fees and telecommunications, computers and information services, it does not have country-specific export statistics. Therefore, people from the Central Bank suggested that you should contact the foreign exchange bureau in person to inquire whether it is available. According to the annual factory calibration and operation survey conducted by the Statistics Department of the Ministry of Economic Affairs of Taiwan, the survey found that the number of Taiwan companies with technology purchases accounted for 2.2% of the total respondents. The countries surveyed include Taiwan, United States, Japan, Germany, South Korea and other regions, there is no separate statistics for the United Kingdom. In this study, 11 associations were contacted, and 6 associations indicated that the procurement issue was an internal business of the company, and the relevant personnel of the association would not be clear; if they only responded to the impression, the questionnaire was suspected of distortion. In addition, because there are so many members, the association cannot assist in the census, so they decided not to reply. The two associations said that the best way is to pass the questionnaire to the members, who will decide whether to reply. Three associations involved in vehicles and automotive materials said that no members purchased UK computer services and paid royalties. This study also collects important relevant matters that occurred in Taiwan in 2018, supplemented by an understanding of the possible reasons for the substantial growth in imports from the UK, including Taiwan’s semiconductor and chip design industry needs, Taiwan’s plan to promote digital national innovation and economic development, and R & D plan of the National center for high-performance computing of the National Applied Research Laboratories of Taiwan, Taiwan attracts large foreign technology companies to invest in the establishment of an innovative R & D center. In summary, we recommend the following: (1). The acquisition of cross-border trade statistics mainly depends on the Office for National Statistics of the United Kingdom, because except for some OECD countries that have published statistics on service trade by country, most countries (including Taiwan) do not have such statistics. (2).The information available from Taiwan’s official and international organizations can be used to assist in verifying consistency with UK service trade statistics. This study collects Taiwan’s official statistics on global service trade and some country-specific service trade statistics published by OECD countries, and uses the difference between the two data to compare the rationality of the UK service trade statistics. (3). Use the official identity of the British in Taiwan to contact the Foreign Exchange Bureau of the Central Bank of Taiwan for assistance. Because the foreign exchange bureau collects and consolidates data on main items of the balance of payments account, it is a possible method to seek assistance from the foreign exchange bureau when many Taiwan companies are unwilling to respond to this study questionnaire and purchases from the UK may be concentrated in a few companies. (4). Collect and observe important events in Taiwan to help identify Taiwan companies that can be consulted in the future. Important public information such as individual companies in Taiwan or new investment companies driven by the policies and measures of the Taiwan government can assist in grasping Taiwan companies that may purchase from abroad as targets for future consultation.