Exports:
Due to influence from the Japan disaster, car exports declined, exports of semiconductors and other electronic components shrank sharply
Japan’s exports to China in 2011 showed double-digit growth in the first quarter, on the back of China’s steady economy (its real GDP growth rate in 2011: 9.2%). However, due to influence from the Great East Japan Earthquake, the growth rate dropped to single-digit in April and May, as a result of a sharp decrease in electric equipment, raw materials and transportation equipment.
Following restoration of production bases, the rate recovered almost to double-digits from June to September, but fell again after October for three consecutive months due to the downturn in the Chinese economy and Europe’s debt crisis.
By product, Japanese shipments of chemical products and general machinery such as metal processing/textile machinery increased, while raw materials and electric equipment including electric circuits almost leveled off, and automobiles were down.
Breakdown by product category:
A sharp rise was seen in the exports of metal processing/textile machinery, manufacturing equipment for semiconductors and other devices and industrial robots, backed by China’s expanding industrial production, rising labor cost and manpower shortage.
A decline was noted in exports of nonferrous metal products including automobiles and refined copper, due to the shortage of parts caused by supply chain disruptions from factories damaged by the Japan disaster. Meanwhile exports of semiconductors and other electronic components and car parts leveled off.
Exports of construction/mining machinery, which rose sharply in the previous year, showed a decline in 2011 due to a decrease of real estate investments reflecting the impact of the Chinese government’s tight monetary policies. Food exports also dropped significantly due to China’s tightening regulations on food imports from Japan following the nuclear accident.
IMPORTS:
Imports surged, fueled by smart phones, emergency supplies
A steady increase was noted in Japanese imports from China in 2011. In addition to imports of electric equipment such as communications devices, clothing and accessories, general machinery, raw materials and foods also showed double-digit growth. Imports of items such as electric fans and batteries shot up as a result of demand to conserve energy following the March disaster.
Breakdown by product category:
Imports of smart phones surged with their increase in popularity. As for chemical products, imports of rare earths and rare metals declined in terms of number, while sharply rising in terms of value, backed by their soaring prices.
Imports of clothing and clothing accessories were up by nearly 20%, despite the recent trend for makers to shift production from China to other Asian countries seeking lower production cost. The growth was fueled by rising import unit value caused by high value added products manufactured in China and an increase in the imports of functional clothing designed to help conserve energy. Food imports rose by nearly 20%, backed by fading concern for Chinese food safety, and rising domestic demand for low price products.
Imports of electric fans, power generators, batteries, flashlights and portable radios soared, reflecting increased needs which have arisen from the electricity shortage and nation-wide power saving measures as well as demand for emergency supplies following the March 11 disaster.
China’s share of all Japanese trade dropped, the first decline in 21 years
The pace of increase in Japan’s trade with China grew by 14.3%, which was less than that of Japan’s overall trade, 14.7%. As a result, China accounted for 20.6% of all Japanese trade, dipping 0.1 point from the year earlier. This is the first such decline since 1990. While Japan’s share of exports to China grew to 19.7%, a record high, its share of imports from China decreased to 21.5%, a drop for two consecutive years reflecting significant expansion of imports from resource-rich countries. China, however, remains Japan’s largest trading partner in terms of import, export and total trade value.