Why East Asia must turn away from exports

日韩躺赢背后的隐忧

Editor's Picks from The Economist

2026-06-02

7 分钟
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A handpicked article read aloud from the latest issue of The Economist. China once relied on its rich Asian neighbours for high-tech components, but it now competes across the entire supply chain. Taiwan, South Korea and Japan must rethink their reliance on export-driven growth.  Topics covered: Asian economiesManufacturingChipmaking Listen to what matters most, from global politics and business to science and technology—subscribe to Economist Podcasts+.
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  • The Economist.

  • Hi, I'm Sarah Wu, co-host of Drum Tower, our podcast about China.

  • Welcome to Editor's Picks.

  • We've handpicked an article for you from the most recent edition of The Economist.

  • We hope you enjoy listening.

  • AMERICA'S artificial-intelligence boom has put the rich economies of north-east Asia into overdrive.

  • Taiwan's output is growing at a blistering 14% annual pace,

  • thanks to soaring sales of chips and servers for data centres.

  • In the past year operating profits at South Korea's makers of memory chips have risen by over 500%.

  • Even sluggish Japan is benefiting—though it long ago lost its title as the world's pre-eminent chipmaker.

  • In 2025 all three countries enjoyed record exports and current-account surpluses.

  • The region's export bonanza, though, obscures an important story in the rest of its economy.

  • As we report, outside its highest-tech sectors, rich north-east Asia is deindustrialising.

  • Strong competition from China, paired with increasing specialisation in chips,

  • has disrupted an economic model based on a wider range of manufacturing exports—

  • the model that helped make the region prosperous in the 1980s and 1990s.

  • Even as it booms, north-east Asia increasingly needs reform.

  • In the past few years China's relations with its rich neighbours have been transformed.

  • Once it imported high-value parts from north-east Asia and focused on low-value final assembly.

  • Now it competes across the whole supply chain.