News
The Japan External Trade Organization （JETRO） recently has released a report on Japan-China trade in 2011 and outlook for 2012, converting yen-denominated statistics for imports and exports released by Japan's Ministry of Finance in February 2012 to US dollars. JETRO said that compared to the previous year Japan's total trade with China rose 14.3% to US$344.9 billion in 2011, setting a new record.
Both imports and exports made record highs; imports from China rose 20% to US$183.4 billion, while exports to China rose 8.3% to US$161.5 billion. Due to consequences of the Great East Japan Earthquake, Japan's export growth fell, allowing import growth to surpass it for the first time since 2005. As a result, Japan's balance of trade logged a deficit of US$21.9 billion, an increase of 5.9 times that of the previous year. This was also the first increase in deficit since 2005.
As for outlook for 2012, Japanese exports to China are expected to either see a decrease or a modest rise at best, resulting from China's tight monetary policies, post-quake adjustment of supply chains and countermeasures against the strong yen taken by domestic companies as well as some effects from Europe's debt crisis.
Imports are expected to show continued double-digit growth, fueled by further development of overseas production and the increasing import of smart phones.
Backed by Japan's import growth, Japan-China trade through 2012 is likely to surpass US$350 billion, possibly topping the record set in 2011.
While export to China had continuously exceeded import from China between 2006 and 2010, the trade deficit which began in 2011 is expected to increase this year, with no factors foreseen to bring significant export growth.
