section_path: Economy
section_name: Economy
paragraph_text: Economy
  
  The quick industrialization and rapid growth of Taiwan during the latter half of the 20th century has been called the " Taiwan Miracle ". Taiwan is one of the " Four Asian Tigers " alongside Hong Kong, South Korea and Singapore. As of October 2022, Taiwan is the 21st largest economy in the world by nominal GDP.
  
  Since 2001, agriculture constituted less than 2 percent of GDP, down from 32 percent in 1951. Unlike its neighbors, South Korea and Japan, the Taiwanese economy is dominated by small and medium-sized enterprises, rather than the large business groups. Traditional labor-intensive industries are steadily being moved offshore and with more capital and technology-intensive industries replacing them. High-technology science parks have sprung up in Taiwan.
  
  Today Taiwan has a dynamic, capitalist, export-driven economy with gradually decreasing state involvement in investment and foreign trade. In keeping with this trend, some large government-owned banks and industrial firms are being privatized. Exports have provided the primary impetus for industrialization. The trade surplus is substantial, and Taiwan remained one of the world's largest forex reserve holders. Taiwan's total trade in 2022 reached US$907 billion. Both exports and imports for the year reached record levels, totaling US$479.52 billion and US$427.60 billion, respectively. China, United States and Japan are Taiwan's three largest trading partners, accounting for over 40 percent of total trade.
  
  Since the beginning of the 1990s, economic ties between Taiwan and China have been extensive. In 2002, China surpassed the United States to become Taiwan's largest export market for the first time. China is also the most important target of outward foreign direct investment. From 1991 to 2022, more than US$200 billion have been invested in China by Taiwanese companies. China hosts around 4,200 Taiwanese enterprises and over 240,000 Taiwanese work in China. Although the economy of Taiwan benefits from this situation, some have expressed the view that the island has become increasingly dependent on the mainland Chinese economy. Others argue that close economic ties between Taiwan and mainland China would make any military intervention by the PLA against Taiwan very costly, and therefore less probable.
  
  Since the 1980s, a number of Taiwan-based technology firms have expanded their reach around the world. Taiwan is a key player in the supply chain for advanced chips. Taiwan's rise in the key semiconductor industry was largely attributed to Taiwan Semiconductor Manufacturing Co. (TSMC) and United Microelectronic Corporation (UMC). TSMC was founded 21 February 1987 and as of December 2021 its market capitalization equated to roughly 90% of Taiwan's GDP. The company is the 9th largest in the world by market capitalization as well as the world's biggest semiconductor manufacturing company, surpassing Intel and Samsung. UMC, another major company in Taiwan's high-tech exports and global semiconductors, competes with the American GlobalFoundries, and others, for less advanced semiconductor processes and for silicon wafers. Other well-known international technology companies based in Taiwan include personal computer manufacturers Acer Inc. and Asus, as well as Foxconn, an electronics contract manufacturer.
  
  Taiwan is a major manufacturer of bicycles and their component parts and accounts for around 40% of all bikes imported to Europe. French newspaper Le Monde diplomatique alleged that in the past several decades, the industry has relied on exploitative migrant labor practices to boost its productivity. Workers recruited from poorer neighboring countries face debt bondage, passport retention, wage withholding and substandard living conditions, as well as threats and intimidation from employers. Taiwan is one of the few countries where labor brokers are permitted to charge high recruitment fees to migrant workers. Recent reporting on these practices has led to promises of reform from some manufacturers. In response to the allegations, the Taiwanese trade association stated that all bicycle manufacturers complied with the labor laws and proactively worked to improve working conditions.