Thursday, 21 Aug, 2008 Technology

US Loses the Race for Japan's Biggest Customer to China


The United States is no longer the biggest customer of Japan as People's Republic of China pushes forward to increase imports from Japan. According to Japan's Finance Ministry the country's exports rose 16.8pc in July, while exports from the United States fell down to 11.5pc.

As the US economy registers a slowdown, Japanese companies such as Honda and Komatsu, focus on the continuously developing and emerging Chinese market.

"China's emergence is a reminder to Japanese exporters that they'll have to keep thinking how to expand in emerging markets, having previously focused on the US. Still, demand from China won't be strong enough to boost exports when the global economy is slowing," said Masamichi Adachi, a senior economist at JPMorgan Chase.

Statistical data shows that exports from China registered a significant increase, reaching a record high of 1.29 trillion yen, which outruns the value of products exported from the United States. Shipments from the US (1.28 trillion yen) showed a downturn for the 11th month in a row.

The land of the rising sun is already flirting with its first downturn in 6 years, after the country registered a recession in this year's second quarter. However it still remains the second largest market in the world.

The current figures from Japan's Ministry of Finance show an 18.2pc increase in imports in July. Trade supply was left to 91.1 billion yen, which is about $830 million. The price for a barrel of oil rocketed up to $147. It is worth mentioning that Japan imports all of its fuel.


Powered by

Add your comment:

antispam code