News
The Japan External Trade Organization (JETRO) has recently announced an analysis on Japan-China trade in 2014, based on import data from ''Trade Statistics of Japan'' by the Ministry of Finance and the ''China Customs Statistics Yearbook.''
According to the survey report, total trade remained at almost the same level as that of the previous year at US$343.7 billion with a 0.2% increase. Exports from Japan to China increased by 0.3% to US$162.7 billion and imports also rose by 0.1% to US$181.0 billion. As a result, Japan's trade balance marked a deficit for the third consecutive year at US$18.3 billion.
Summary points are as follows:
Feature of 2014
1) Exports remain almost unchanged from a year earlier due to decline of chemical products, despite increases in transportation equipment and general machinery
Breakdown by product category:
The number of exported passenger cars increased by 22.2% from the 6.4% in 2013. This marked a record high surpassing the level of 2011 before demonstrations in both trade volume and value. Japan has become the largest exporter of passenger vehicles in volume for China.
Export of communication devices (including the components) increased by 37.0% due to a growing demand for smart phone components in China. In semiconductors and electronic components, the largest export category, the trade value decreased although the volume increased centering on low-priced ICs.
The number of machining centers tripled from the previous year, which has driven growth for the export of general machinery. Meanwhile, export of food products showed an increase of 27.7% as a whole, including a double-digit rise in frozen seafood.
In chemical products, export of organic compounds marked a double-digit decline due to the sluggish market.
2) Imports remain mostly unchanged year-on-year due to decline of apparel and accessories, despite increases in electrical equipment and manufactured goods
Breakdown by product category:
Imports of communication devices centering on smart phones maintained the same level as a year earlier due to strong sales of the new models in fall. Semiconductors and electronic components increased by just 37.9%. In this field, photoelectric cells increased by just 59.8%, partially because of greater demand for solar power generation systems. Increasing sales of ICs caused by high demand for electrical equipment such as tablets also contributed to the rise of imports in this field.
Imports of iron and steel increased by 35.4% in the forms of wire rods and alloy steel due to a rising demand for earthquake reconstruction and a last minute surge in demand before refunds of value-added tax for exports were terminated in China.
The year-on-year rate of decline in apparel and accessories expanded, marking a double-digit decrease. Some companies have further relocated production bases for high value-added garments including dresses, jackets and suits from China to ASEAN countries such as Vietnam and Indonesia.
3) Trade deficit with China: Japan's deficit marks third consecutive year
Japan's trade deficit with China continued for the third consecutive year. Since the growth of exports slightly exceeded that of imports, the deficit decreased to US$18.3 billion, a 1.7% decline from the previous year.
