Japan’s exports to China fell sharply last month from a year ago, highlighting the effect on trade of a territorial dispute between Asia’s two largest economies.
According to yesterday’s preliminary data from the finance ministry, shipments to China from Japan dropped 14.1 per cent in September from a year earlier, accelerating from a 9.9 per cent fall in August. The figures show that the stand-off over a group of islands in the East China Sea, administered by Japan but also claimed by China and Taiwan, is exacerbating difficulties for exporters already hit by sluggish demand in developed economies and a persistently strong yen.
Overall, shipments from Japan slid 10.3 per cent in September from a year earlier, knocked by enduring weakness in Europe, resulting in a trade deficit of Y559bn ($7bn), slightly wider than expected. Imports rose 4.1 per cent, as Japan bought more oil and liquefied natural gas to offset lost nuclear capacity.