Taiwan’s textile exports grew two per cent from January to July this year. The full-year increase may be larger as the traditional peak season falls in the second half. Last year, textile exports grew by only 0.8 per cent.

Taiwanese textile manufacturers are becoming the top choice for global apparel and shoe brands and retailers whenever they want to experiment with new textiles. Sports apparel, outdoor wear and sports shoes have been the main sources of revenue for local textile makers. Taiwanese textile manufacturers supply 40 per cent of materials used in Nike shoes, and 20 per cent of materials for Adidas shoes. Orders for functional textiles used mostly in sports and outdoor apparel are expected to grow 21 per cent this year compared to last year.

Manufacturers expect to benefit from the US-China trade dispute in the long run as major global retailers seek to relocate their Chinese plants to southeast Asian and African nations or India to circumvent new import tariffs imposed by the US.

Taiwanese textile suppliers might benefit from such supply chain shifts. They will not face a higher tax burden, as they could ship their products to the US from their factories in Vietnam or in Taiwan.