Taiwan economy to benefit from reunification

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Taiwan's reunification with the Chinese mainland could reshape the island's economic landscape by providing greater policy certainty, strengthening energy security and accelerating infrastructure upgrades, analysts said.

On Oct 25 last year, marked as Taiwan Recovery Day, Wang Huning, a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee and chairman of the National Committee of the Chinese People's Political Consultative Conference, outlined seven areas in which Taiwan could see improvements following peaceful reunification.

The seven areas include stronger economic development, enhanced energy and resource security, improved infrastructure, greater security, expanded external exchanges, improved livelihoods, and richer cultural and spiritual lives for Taiwan residents.

Analysts said the mainland's economic scale and ongoing cross-Strait exchanges have demonstrated the potential for deeper integration in these areas.

Industrial complementarity

The mainland and Taiwan share complementary advantages across their industrial and supply chains, said Tang Hua, an associate professor at Xiamen University in Fujian province.

"For Taiwan enterprises, from creative ideas to finished products, and from research and development to sales, efficient supporting resources are available on the mainland," Tang said.

Despite the Democratic Progressive Party's efforts to restrict cross-Strait exchanges and cooperation, demand for such cooperation remains strong in Taiwan, while industrial ties across the Strait continue to deepen, according to trade data and industry assessments.

According to the General Administration of Customs, cross-Strait trade totaled about $185 billion from January to June this year, up 25.3 percent year-on-year. The mainland's exports to Taiwan reached $51.88 billion, an increase of 32.9 percent, while its imports from Taiwan stood at $133.15 billion, up 22.5 percent year-on-year.

To date, 67 Taiwan enterprises have been listed on mainland stock exchanges.

The mainland's 15th Five-Year Plan (2026-30) further encourages cross-Strait economic cooperation. According to the plan, the mainland will continue to introduce policies benefiting Taiwan compatriots and enterprises, support Taiwan businesses in developing on the mainland and encourage their participation in national regional development strategies and the Belt and Road Initiative. The plan also calls for building a common market across the Taiwan Strait and encouraging Taiwan-funded enterprises to list on mainland exchanges.

In August, Taiwan's federation of industries, the island's largest industrial and business association, released its annual white paper, calling on the DPP authorities to study the industrial trends outlined in the 15th Five-Year Plan. The move, it said, would help Taiwan businesses better understand changes in the mainland market and identify future business opportunities.

The white paper described the mainland market as "an indispensable and key source of revenue for many Taiwan enterprises". As the mainland builds global competitiveness in emerging technology sectors, it generates substantial demand in new areas and creates opportunities for Taiwan businesses with technological advantages to explore new markets, the federation said.

The mainland has one of the world's most complete industrial systems, while Taiwan has technological advantages in fields such as semiconductors and precision manufacturing, Tang said.

"The two sides can therefore form a complementary structure featuring Taiwan-based research and development combined with mainland manufacturing, or Taiwan's technologies paired with the mainland's market," she added.

Zhong Houtao, a professor at the University of International Relations in Beijing, said Taiwan's economy would be more resilient to external shocks with the support of the mainland market.

Taiwan Semiconductor Manufacturing Company, the world's largest contract chipmaker, has increased investment and relocated manufacturing capacity to the United States amid US tariff pressures, according to reports. The move has raised concerns in Taiwan that the relocation could weaken a key pillar of the island's industrial sector.

Zhong said Taiwan's economic structure remained vulnerable because of its reliance on external resources and markets.

"It will encounter challenges if problems arise either in the supply of raw materials or in market demand," he said.

"With the mainland as a strong support, Taiwan would be better positioned to safeguard its own interests and gain greater confidence, and no longer need to be constrained by external forces," Zhong added.

Energy security

Peaceful reunification could help diversify and optimize Taiwan's energy mix, contributing to a more stable energy supply for residents and industries, experts said.

Taiwan currently relies heavily on energy imports because of its limited natural resources, with shipments mainly transported through a concentrated network of maritime routes. In 2025, imports accounted for 95.4 percent of the island's oil consumption. Its energy mix consists mainly of crude oil, liquefied natural gas and coal, while its current natural gas reserves are sufficient to cover about 11 days of consumption.

Rising geopolitical tensions in the Middle East have heightened concerns in Taiwan over energy supply security and raw material costs. The island has also experienced several power outages and rising prices for plastic materials this year, affecting daily life and industrial operations.

Zhong said Taiwan's economic foundations could face significant challenges if external energy supplies were disrupted by global or regional instability.

The concentration of energy transportation routes makes the island's energy security more vulnerable, Tang said, noting that disruptions to critical maritime routes could put its energy supply under considerable pressure.

She added that Taiwan's energy security was also affected by policy decisions. The DPP authorities' decision to phase out nuclear power before renewable energy sources were fully developed, she said, reflected a greater emphasis on political considerations than on technical assessments. Relying on policy preferences rather than a balanced assessment of energy needs could create systemic risks for the island's energy security, Zhong said.

In contrast, the mainland has developed the world's largest and fastest-growing renewable energy system, with total installed renewable energy capacity reaching 2.34 billion kilowatts by the end of 2025, according to the National Energy Administration.

The mainland's total electricity consumption surpassed 10 trillion kilowatt-hours for the first time in 2025, without power rationing or price increases, according to official data.

"The mainland's diversified energy mix and rapid development of renewable energy sources, including wind and solar power, could help provide a more stable power supply for Taiwan, while reducing the island's reliance on energy imports and maritime transportation," Tang said.

Greater cross-Strait energy connectivity could also help lower electricity costs and provide a more stable power supply for energy-intensive industries in Taiwan, boosting investment and employment, she added.

Upgraded infrastructure

The mainland's infrastructure development has drawn considerable attention in Taiwan in recent years, with many visitors from the island impressed by proposed projects such as the Xiamen-Jinmen Bridge, a cross-sea link connecting Jinmen county in Taiwan and Xiamen in Fujian.

Once completed, the bridge will shorten travel time between Jinmen and Xiamen to less than 20 minutes. It will also provide more convenient access to the newly built Xiang'an International Airport in Xiamen, facilitating travel for Jinmen residents. The project, however, has not been approved by the DPP authorities.

At a regular news conference in March, Zhu Fenglian, a spokeswoman for the State Council Taiwan Affairs Office, said that "peaceful reunification will become the starting point for new and upgraded infrastructure in Taiwan". She added that Taiwan residents would be able to drive to Beijing via highways connecting the two sides after reunification.

Zhong said Taiwan could draw on the mainland's extensive experience in infrastructure construction. Citing the mainland's high-speed railway network, he said its experience could provide a reference for Taiwan, including in the construction of a high-speed rail loop around the island.

The mainland's transportation infrastructure expertise could also help address challenges in Taiwan's east-west transport links arising from its mountainous terrain, he added.

The mainland has advantages in undertaking large-scale infrastructure projects and coordinating resources on a massive scale, while its infrastructure planning places people's needs at the center, Tang said.

Beyond transportation, infrastructure in fields such as energy, agriculture, forestry, water conservancy and urban renewal could also be rebuilt and upgraded after reunification, Zhu said.

The mainland has already provided practical support in water supply. Since 2018, Fujian has supplied water to Jinmen county. As of July 1, Fujian had delivered more than 50 million metric tons of water to the county, accounting for 87 percent of its daily water supply.

Wang Hailiang, director of the Shanghai Institute for East Asian Studies, said existing obstacles between the two sides had made it difficult to fully address and protect the interests and needs of ordinary people.

"Under reunification, the country could provide Taiwan with more comprehensive support and safeguards through coordinated institutions and mechanisms," he said.

Shi Xuefan contributed to this story.

lishangyi@chinadaily.com.cn