News
According to a report released recently by the Japan External Trade Organization (JETRO), Japan's total trade with China (imports and exports combined) rose 34.5% to US$138.4 billion in the first half of 2010, setting a new record. This was the first increase (on half-year basis) since the second half of 2008. Japan's exports to China rose by 47.1% to US$68.4 billion, while Japan's imports from China rose 24.2 % to US$69.9 billion.
In the first half of 2010, Japan's exports to China set a record on a half-yearly basis, on the back of expanding domestic demand in China and an increase in Chinese exports to Japan, the US and Europe. An increase was noted in exports of automobiles as well as parts and materials for production of finished goods in China.
Japan's imports from China also set a record in the first half of 2010 (on a first half-year basis). This improvement was due to an increase in imports of finished goods such as electrical machinery, fueled by growing demand in Japan on the back of its economic recovery. Imports of foodstuffs showed signs of recovery as well, while imports of clothing and accessories showed signs of peaking due to a reduction in household spending on clothing and relocation of production bases out of China by some companies.
For the entire 2010, Japan-China trade is predicted to post positive growth, led by economic growth in China?where growth of over 9% is expected in the second half of 2010?and continued recovery of the Japanese economy. Two-way trade, however, may deteriorate in the second half of 2010, due to projected sluggish growth in China of industrial production, fixed asset investment and consumption, as well as a possible slowing of Japan’s economic growth. Despite this, Japan-China trade in 2010 is expected to register its first growth in two years, possibly topping the previous record set in 2008.
