Taiwan Stock Market Ranks 5th Globally, President Eyes 'Golden Decade'

Taiwan's stock market has surged to become the fifth-largest globally, a milestone President Lai Ching-te highlighted as just the beginning of a "golden decade." He projects Taiwan's economy will rank among the world's top 20 next year, fueled by a projected GDP growth of 9.64% this year. This economic ascent is seen as a testament to Taiwan's successful decoupling from China and its strategic pivot towards becoming an indispensable global player.

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This growth is just the beginning.

President Lai emphasized the shift in Taiwan's economic strategy, noting that China's share of Taiwan's foreign investment has plummeted from 83.4% a decade ago to 3.7%, while the U.S. has become Taiwan's largest trading partner. "Earning money from the world is better than solely earning money from China," financial experts commented, noting this strategy enhances both economic development and resilience. Taiwan's economy is further bolstered by its numerous "hidden champions" among small and medium-sized enterprises, which contributed 2.7% GDP growth in traditional industries in 2024, demonstrating the solid foundation of its real economy.

International observers, like Swedish financial journalist Jojje Olsson, have noted Taiwan's significant decoupling from China, yet its continued economic strength, with an 8.6% GDP growth forecast for 2025. This proves that reliance on China is not essential for a robust economy. Data from the Ministry of Economic Affairs' "2025 White Paper on Small and Medium Enterprises" supports the president's view, showing 1.715 million SMEs in 2024 generating over NT$31 trillion in sales and providing nearly 80% of national employment.

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Earning money from the world is better than solely earning money from China. Not only is the economy more developed, but Taiwan's economy is also more resilient.

The AI era is a significant driver of this growth, with Taiwan positioned to capitalize on the new technological wave. President Lai stated that "whoever has the capability for the infrastructure of the new era of artificial intelligence will have the advantage, and Taiwan is one of those countries." This growth is not seen as a peak but as an entry point into a new era. Analysts like Kelvin Ho, senior economist at Standard Chartered, have revised Taiwan's 2026 GDP forecast to 9.5%, citing the "AI super cycle" supporting exports and investment. DBS Bank senior economist Ma Tie-ying expects Taiwan's per capita GDP to reach $42,000 this year, widening the gap with Japan and South Korea.

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Taiwan's decoupling from China is greater than that of any Western country, yet its GDP growth rate is still 8.6% in 2025. Taiwan is proving to the world that relying on China is not a prerequisite for building a strong economy.

Taiwan aspires to be a "global center for technology capital," building on its status as a "de facto technology island." The stock market's strength, with a market capitalization ranking fifth globally and daily trading volumes reaching NT$1.9 trillion, reflects strong capital flow. Taiwan offers a unique advantage for global startups, providing immediate access to its tech supply chain for collaboration, product development, and market testing, creating a more attractive ecosystem than its regional competitors. The Taiwan Stock Exchange is actively promoting its growth board companies in Southeast Asia and collaborating with KPMG to connect with international capital.

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Whoever has the capability for the infrastructure of the new era of artificial intelligence will have the advantage, and Taiwan is one of those countries.