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China Becomes Japan's Largest Source of Imports.
(From Journal of Japanese Trade & Industry (JJTI))
China's exports to Japan and the United Sates have been steadily expanding. Japan's provisional trade statistics for 2002 on a custom-cleared basis showed that Japan's imports from China, often described as the factory of the world, surpassed those from the United States. China became Japan's largest import source for the first time since the end of World War II. As Japan's imports from China are likely to continue rising, Japan's trade deficit with China is certain to expand unless Japanese exports to China grow. The structure of Japan's international trade, previously dependent on trade with the United States, is now undergoing drastic changes.
Japan's imports from China in 2002 grew 9.9% over the previous year to \7,724.9 billion, while exports to China jumped 32.3% to \4,979.3 billion, the highest figures on record. The substantial increase in exports resulted from a sharp rise in direct investment in China following China's accession to the World Trade Organization (WTO).
Machinery, including office equipment, accounted for 33.5% of Japan's imports from China and replaced textiles as the largest import item from that country. Of Japanese exports to China, electrical equipment, including electronic components, have increased sharply.
The expansion of Chinese exports to Japan is attributed to new trends in the structure of bilateral merchandise trade: Japan has been boosting exports of machinery required for production, while China ...
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