China-Japan Trade Slumps in First Half of 2013

                  (Photo: ConzNL/flickr C.C.)

                       by David Parmer

The numbers do not look good. Depending on the source, China-Japan trade for the first half of 2013 is down either 8.8% or 10.8%. Politics plays a part, but other than that, it is just business as unusual.

 Reporting an 8.8% slump in its trade with Japan, a spokesman for China’s Ministry of Commerce, Shen Danyang, was quoted in China Daily on 23 August 2013 as giving three reasons for the downturn. 

• Low demand from China manufacturers reduced the imports of raw materials and parts from Japan
• Appreciation of the Chinese Yuan against the Japanese Yen made China’s goods more expensive for Japan’s importers
• The ongoing dispute over the Daioyou/Senkaku islands had a ripple-on effect resulting in the decreased purchase of Japanese vehicles and electronics

Even more dour was the estimate by Japan’s JETRO which reported on its website that the total of Japan’s trade with China dropped 10.8% in the first half of 2013. More bad news included a drop of 16.7% in exports to China and a trade deficit of $24.4 billion USD, which is an increase of 1.4 times over the previous year.

JETRO’s outlook for the overall year, 2013, is gloomy, with exports stagnant at best. The only glimmer of hope is seen in the weak Yen, which may give a boost to exports of electronic parts and automotive components.

China Daily 23 August 2013: http://www.chinadaily.com.cn/china/2013-08/23/content_16917587.htm

 JETRO Trade Survey: http://www.jetro.go.jp/en/news/releases/20130820558-news