China now Japan's largest trading partner - Jetro

MANILA, Philippines- China overtook the United States as Japan’s largest trading partner in 2007, the latest report from Japan External Trade Organization (Jetro) said. Jetro, a Japanese government-related organization that works to promote mutual trade and investment between Japan and the rest of the world, said Japan-China trade (imports and exports combined) grew 12 percent to $236.6 billion last year. The agency, however, did not provide the figures for Japan's total trade with the US. It only said that trade with the US made up 16.1 percent, down 1.3 points from the 2006 figure, of Japan’s total trade. Trade with China grew 0.5 points to 17.7 percent, eclipsing the US for the first time. “Japan's trade with China in 2007 set a record for ninth straight year," Jetro said. Japan's exports to China rose 17.5 percent year-on-year to $109.1 billion in 2007, topping the $100 billion mark for the first time. The export growth, Jetro said, reflected the strength of the Chinese economy. “Significant increases were noted in exports of electric equipment, including semiconductors and other electronic parts and high-end digital cameras…," Jetro added. Exports of passenger cars were also up, driven by robust sales of luxury automobiles (with engine capacities of 3000cc and above) and full-size SUVs, which are in high demand among Chinese companies and wealthy citizens. Japan's imports from China, meanwhile, also rose 7.6 percent year-on-year to $127.6 billion in 2007, led by electric equipment, such as mobile phones, low-end digital cameras and DVD players/recorders. But Jetro reported that owing to concerns over Chinese food safety, imports from China for crude oil and coal, as well as in fish and fish preparation and fresh vegetables. “Moreover, although China has been Japan's largest import source since 2002, the import growth rate has been on the slide since 2004, due partly to stagnant sales in personal computers," Jetro said. Japan's bilateral trade deficit with China decreased 27.9 percent year-on-year in 2007 to $18.6 billion, marking the 20th straight year for such a deficit to be recorded. For this year, Jetro said it estimates a steady growth in exports to China of automobiles and digital home appliances, owing to strong demand for Japanese goods in the country and backed by a buoyant Chinese economy. An increase in exports of large-screen LCD TVs and semiconductors and other electronic parts (mainly ICs) is also expected, owing to a spike in global demand for audio and visual equipment (TVs, DVD players, etc.), ahead of the 2008 Summer Olympic Games in Beijing. - GMANews.TV