Taiwan’s beer industry resilient facing China’s import ban

TAIPEI (TVBS News) — The shelves of Taiwan's supermarkets are increasingly filled with Chinese-made beers, highlighting a stark disparity in the trade relationship between the beer industry on the two sides of the Taiwan Strait. As Taiwanese breweries face repeated bans on selling their products in China, they are now trying to establish alternative business partnerships.

According to data from the Ministry of Economic Affairs, Chinese beers currently account for a staggering 51% of imported beer in the Taiwanese market. Several prominent American and Japanese beer manufacturers have set up production lines in China to reduce production costs, further bolstering the Chinese presence.

While some consumers argue that taste should take precedence over origin, China's consistent imposition of bans has dealt severe economic blows to Taiwan's beer industry. In an unexpected move last December, Chinese customs abruptly suspended the importation of Taiwanese alcohol, citing issues with Taiwan's registration number compliance. Despite submitting the necessary documents in February, the application was returned at the end of May due to labeling discrepancies.

Ministry of Economic Affairs statistics reveal that out of the total domestic demand for alcoholic beverages in Taiwan last year, which reached 706 million liters, imported beers accounted for a significant 75.8%, amounting to 326 million liters. This represents a robust growth rate of 5.6% over the past decade. In contrast, domestically produced Taiwanese beers experienced a sharp decline of -3.2%.

As a result, Taiwan has actively explored alternative business partnerships with countries such as Japan, France, the United States, and various Middle Eastern nations. The suspension of Taiwan liquor imports by China, coupled with the substantial presence of Chinese beer in Taiwan's market, has taken a toll on the local beer industry. Taiwan proactively seeks potential business partners to diversify its trade avenues to mitigate these losses.

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