The geopolitical influences on red tea in Taiwan

Alishan Red Tea from summer 2022

In 1897, 2 years after Japan conquered Taiwan, tea was its number 1 good for exports, accounting 22.2% of total exports and most of it (96%) went to NYC and Chicago! In the previous 30 years, the annual growth rate of tea production had been 16.5%, but the above chart shows that Oolong tea production stagnated and the slow increase in Pouchon (Baozhong) tea couldn't compensate the decline.

This chart is also interesting, because we can see that Taiwan was exclusively producing Oolong and Baozhong tea until 1911 and it's only in 1932 that red tea (fully oxidized tea, aka as black tea in the west) started to take off in Taiwan. Why?

This increased red tea production was not intended for the USA, but was shipped to Japan. The timing with the Great Depression and the Invasion of China by Japan is not a coincidence. The Great Depression turned into a worldwide economic crisis because of a lack of financial liquidities and protectionist moves by every country. Taiwanese teas were vulnerable, because they were already more expensive than teas from Ceylan or India and had to compete on quality. The Smoot-Hawley Tarriff Act had dramatic effects. The fact that Japan was seen as a growing menace for the West with its invasion of Manchuria (China) didn't help.

In the 1930s, Japan also turned to protectionist measures. It developed red tea in Taiwan, a place it ruled, in order to replace red tea that came from the British in India. This would also help make up for the lost exports to the USA that would go completely flat after Pearl Harbor.

Yuchi tea factory, near Sun Moon Lake

The Japanese created the brand Nitto (RiDong), which sounds very much like 'Lipton' in order to compete with the British tea company. Among others, they exploited two areas that were particularly suitable for red tea: Yuchi near Sun Moon Lake and the East coast of Taiwan (between Hualien and Taitung). However, despite building a railroad to Alishan, the Japanese didn't exploit this region for tea, but for wood! So, if we can enjoy Alishan red tea, it's only indirectly due to the Japanese. But while Japan created the red tea production in Taiwan, even in Yuchi and on the East Coast, the red teas are not the same cultivars anymore. Hong Yu (#18) and Hong Yun (#21) have improved the Assam cultivars previously used, and there's also a new red tea that found inspiration in Oriental Beauty

 

Taiwan red teas have experienced a revival since 2006, 5 years after China's accession to the WTO. Reduced tariffs and rising local consumption in China helped create a demand for high quality, whole leave red teas. The most famous red tea spearheading this trend was Jin Jun Mei, made in Tongmu village, in Fujian Province. This Chinese demand for top red teas was quickly felt in Taiwan where tea farmers started to make such teas in summer. This 2022 Alishan red tea made with Qingxin leaves harvested in June is one of the most interesting innovation concerning red teas. High mountains are unlikely places to produce fully oxidized teas, because the temperatures in the factory are lower and oxidation levels are often too low for this reason. However, when it's well done, we obtain wonderful aromas and lots of finesse with a hint of mountain freshness. This is the first time a high mountain red has given me satisfaction and landed in my selection!

And check out the pictures of the plantation. It's gorgeous!

We don't have a crystal ball to tell the future, but history tells us that current geopolitical tensions in the Taiwan straits (and elsewhere) will influence Taiwan's tea production. We continue to monitor innovations in order to select the best and most interesting leaves. And while simple citizens are quite powerless when it comes to (trade) wars, as consumers you can support the beautiful Formosa island by purchasing Taiwan's #1 export good in 1900!