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Taiwan claims value add advantage over China

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ComputerWire: IT Industry Intelligence

Taiwan has highlighted the amount of added value its high-tech business sector generates compared to its mainland Chinese counterparts, even as the People's Republic begins to flex its muscles in the sector.

According to figures from the Ministry of Economic Affairs, Taiwan's high tech industries generated an average of 45.62% added value in 1999, compared to China's 24.48%. In the electronics sector, according to the figures, Taiwan adds 40.10% while in optical telecommunications, the figure is 63.4%. In China, the figures are 20.06% and 23.81% respectively.

Taiwan claims the figures show it has a healthy lead in technological competitiveness and research. Over 70% of Taiwanese firms maintain R&D centers, compared to 32% in China.

However, while Taiwan is trumpeting its lead over its much larger rival, it is worth remembering the figures apply to 1999. In the meantime, China has actively sought expertise from the outside world, while foreign companies have been falling over themselves to set-up shop in the country, hoping to grab a piece of the world's biggest emerging market.

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