Industry grew 24 per cent in the first seven months of this year. Manufacturing rose 26.1 per cent, replacing building construction as the pacesetter. Construction was up 21.6 per cent. followed by utilities at 13.8 per cent. Mining declined 6.4 per cent.
Machinery was the fastes-growing manufacturing industry at 53.8 per cent. Electronics and electric appliances followed at 48.7 per cent. Textiles grew by 40 per cent.
Industrial commodities accounted for 94.4 per cent of exports in the first seven months of 1973. Of the US$2,199.5 million worth of commodities exported, US$2,066.6 million worth, were industrial products.
Light industrial products worth US$1,312.3 million made up 63.2 per cent of the total for an increase of 51.3 per cent. Heavy industrial exports of US$754.3 million were up 47.8 per cent.
In the first half of this year, 3,908 new factories were built. The rate of increase was 167.1 per cent. Combined capital was NT$6,586.31 million (US$173.32 million).
Heavy and petrochemical industries operate 45.85 per cent of new factories
Foreign trade totals US$6,530 m. in FY73
Foreign trade totaled US$6,530 million in the 1972-73 fiscal year. Customs statistics showed exports of US$3,607 million and imports of US$2,923 million.
More than 130 countries and areas engaged in trade with the Republic of China.
The trade gap with Japan is narrowing. It was US$290 million in the first half of last year and US$270 million in the first half of this year.
Industrial commodities accounted for more than 82 per cent of exports for the last fiscal year. The total was US$2,983 million.
A total of US$624 million worth of agricultural products was exported.
Capital goods worth US$726 million were imported together with US$1,197 million worth of raw materials.
Change in rebate of taxes opposed
Export-oriented industries are opposed to any change in the tax rebate system.
Trade associations for textiles, canned food and electrical appliances expressed concern.
The government was reported considering curtailment of the "tax holiday" for processing industries to discourage export expansion.
Rebates would be terminated on imports of raw materials by industries whose exports are under quota control. Only half of taxes would be refunded on raw materials imported by industries not under quota control.
All export processing industries now enjoy tax rebates on imported raw materials when the finished products are exported.
The tax rebate law has been credited with spurring economic growth. Some economists say export encouragement is no longer needed. US$1.7 billion in foreign exchange reserves are creating an inflationary pressure.
NT$6,600 million could be added to the national treasury annually by curtailing the holiday. No immediate decision is expected.
Legislative Yuan revises tariffs
The Legislative Yuan has exempted eight categories of products from import duties and reduced the rates for 94 others. Tariff rates for 15 categories of commodities were raised.
Tax exemptions were given fishing boats, coal, wood chips and bark for pulp and aviation ground training facilities.
Tariff cuts ranging from 3 to 62 per cent are expected to encourage meat and seafood imports. The duty on beef was cut from 30 to 20 per cent.
Abalone was cut 62 per cent. Dried squid was cut from 78 to 65 per cent.
Other cuts went to feeds, important industrial raw materials, agricultural machinery, steel and timber.
Lower tariffs will contribute to the fight against inflation.
Agreement reached on textile quotas
Chinese and American representatives reached agreements on Taiwan exports of cotton and synthetic fiber textiles in 1974.
The U.S. four-member delegation was headed by Antony Jurich, a senior adviser to President Nixon's Council on International Economic Policy.
The Chinese side was headed by Y.T. Wong, director-general of the Board of Foreign Trade.
Quotas totaling 4,725,000 square yards which were not used last year will be carried over to the new year.
Gloves and mittens were set at 3,600,000 dozen.
Handicrafts and Christmas decorations of cotton are excluded from quotas provided samples are sent to the U.S. for inspection in advance.
Man-made textile quotas are:
Category 205 (yarn and others), 1,500,000 square yards.
Category 210 (other synthetic textiles including synthetic wool exceeding 17 per cent of total and cotton/synthetic textiles), 2,000,000 square yards.
Category 214 (knitted gloves and mittens), 6,250,000 square yards.
Category 240 (other non-knitwear), 14,250,000 square yards.
Amounts under category 219 (knitted shirts) and 221 (shirts and woolen vests) will be decided later.
ROC seeks markets for surplus yarn
Output of synthetic stretch yarn will be more than sufficient to meet demand by the middle of next year.
Stretch yarn makers have begun to develop export markets. An investment and trade mission organized by the industry visited countries in South and Central America. The possibility of establishing clothing factories in Latin America was explored. Most stretch yarn is made from nylon and polyester fiber.
Making the nylon fiber are Kuohwa Chemicals, United Nylon, Lian Yu Industrial, Ta Ming Fiber Industrial, Cheng Ta Nylon Pacific Enterprise, San Yuan Shin Enterprise.
Total monthly capacity is 3,300,000 kilograms (primarily nylon-6 fiber). This will increase to 9,400,000 kilograms by next June when six new factories come into production.
Monthly output of polyester fiber will reach 10 million kilograms by the middle of next year, up from 1973's 2,200,000 kilograms.
Companies making polyester fiber are Hualon, Nanya Plastic, Oriental Chemical Fiber, Lian Yu Industrial, Kuohwa Chemical, Yu Ho Fiber Industrial, Shinkong Synthetic Fiber, Hungchow Chemicals and Pacific Enterprises.
Five newcomers will enter polyester fiber production toward the end of 1974.
Monthly output of nylon stretch yarn will reach 7,200,000 kilograms early next year. Polyester stretch yarn will rise to 4,500,000 kilograms.
U.S. Steel Corporation to help build mill
Taiwan's first integrated steel mill will be built with the help of the USS Engineers and Consultants Inc., a subsidiary of the U.S. Steel Corporation.
The China Steel Corporation signed a contract with USS Engineers and Consultants at Pittsburgh, Pa.
China Steel was inaugurated in 1971 to build and operate the mill, which is scheduled for commissioning in 1977.
Y. T. Chao, China Steel president and J. R. Ferguson Jr., president of the U.S. Steel subsidiary, signed the contract.
The U.S. company will provide technical services for a mill with initial capacity of 1.5 million metric tons annually.
The US$325 million project is expected to be completed in two stages. Capacity will be increased to 6 million metric tons.
The U.S. Steel subsidiary will make a feasibility study and prepare plans and estimates. It also will be responsible for detailed engineering and construction supervision and provide technical and management assistance for start-up and subsequent operations. The company replaces Austria's Voest Steel Corporation, which demanded changes in agreements with China Steel after devaluation of the U.S. dollar.
U.S. Steel has no investment commitments.
Govt. acts to ensure steel bar supplies
Rationing stations have been set up throughout Taiwan to facilitate purchase of steel bars.
According to the Industrial Development Bureau, the stations are affiliated with the branch offices of the Taiwan Supply Bureau in Taipei, Taichung, Chiayi and Kaohsiung. Six other stations were added subsequently.
The bureau said users of steel bars whose purchases total more than 100,000 tons may buy from the stations. Applications may be submitted by mail. The system also applies to public and military organizations.
1,660,000 TV sets exported to U.S.
Taiwan exported 1,660,000 television sets worth US$98.5 million to the United States in the first half of this year, an increase of 36.2 per cent.
Quoting figures published by the American Television Digest, the Taiwan Electric Appliances Manufacturers' Association said of the 393,000 color TV sets the United States imported in the second quarter of this year, those from the Republic of China accounted for 26.5 per cent, or 105,000 sets.
Exports of color sets to the United States in the first six months of this year numbered 161,600, an increase of 135.8 per cent.
The export of black and white sets to the United States totaled 1.5 million sets in the same period, an increase of 15.5 per cent.
State enterprises earn NT$7,835 m.
The 11 state enterprises registered a combined business volume of NT$39,768 million in the fiscal year ended June 30, an increase of 18 per cent.
Earnings amounted to NT$7,835 million, a rise of 27.4 per cent.
Economic Affairs Minister Y. S. Sun, who presided over the annual review conference of state enterprises, praised achievements in the public sector of the economy.
During the last five years, state enterprises have spent NT$44,599 million for expansion and improvement of facilities.
Development of energy resources claimed the lion's share of the investment at NT$48,600 million, or 87 per cent.
The rest of the money went to petrochemical industries (NT$2,900 million, or 7 per cent), metal industries (NT$1,900 million, or 4 per cent) and the machinery industry (NT$1,100 million, or 2 per cent).
State enterprises include the Taiwan Power Company, Chinese Petroleum Corporation, Taiwan Sugar Corporation, Taiwan Shipbuilding Corporation, Taiwan Fertilizer Corporation and Taiwan Aluminum Corporation.
Labor shortage hits manufacturing
Manufacturing industries are suffering from a shortage of skilled workers. The Taiwan Provincial Labor Force Survey and Research Institute said employment of manufacturing industries was 939,740 with 37,032 job openings as of last April.
About 98 per cent of the vacant jobs are for technicians and skilled workers in textiles, silk reeling, bleaching and dyeing, tool making, machinery, welding, electronics, furniture and handicrafts.
The April employment figure represented an increase of 49,146 in a year.
The textile industry had 163,027 workers, followed by electronics, machinery, food processing and chemicals.
In April the average monthly salary was NT$2,471, an increase of NT$98, since January. Hours were down by two per month in the same period.