Taiwan’s unemployment rate remains steady at 3.75%
On June 22, the National Statistics Office of the Republic of China reported unemployment figures for the economy of Taiwan. The unemployment rate for Taiwan held steady at 3.75% in May. The iShares MSCI Taiwan ETF (EWT) provides exposure to Taiwanese equity. Investors also gain exposure to Taiwanese equity by investing in the ADRs[1. American Depository Receipts] of Taiwanese companies listed on US exchanges, such as Taiwan Semiconductor Manufacturing (TSM), Advanced Semiconductor Engineering (ASX), Himax Technologies (HIMX), and United Microelectronics Corporation (UMC).
Taiwan and China
When it comes to Taiwan, you can’t help but reflect on its complex relationship with China (FXI). Taiwan split from China during the Chinese Civil War in 1949. China has since regarded Taiwan as a renegade province and its government as an illegitimate administration. China has long pushed for Taiwan to also accept the same “one country, two systems” policy that it has maintained with Hong Kong since 1997.
China is eyeing Taiwan’s technological expertise
Taiwan is one of the world’s largest exporters of semiconductors and other high-tech electronic components, and China wants to use this infrastructure to its advantage by removing all trade barriers between the two nations. China has therefore been pushing for a trade liberalization deal with Taiwan. Read more in our article What are the implications of Taiwan-China unification?
Tensions between Taiwan and China also affect ETFs investing in the Chinese markets, such as the iShares China Large-Cap ETF (FXI), the Deutsche X-trackers Harvest CSI 300 China A-Shares ETF (ASHR), the iShares MSCI China Index Fund (MCHI), and the iShares MSCI All Country Asia ex Japan Index Fund (AAXJ).