Japan's Trade Deficit With China Will Expand Further.

Japan's trade promotion agency said on Tuesday that Japan's huge trade deficit with China is expected to expand further this year as domestic demand imports grow faster than Japan's export growth to the Chinese market.

Japan's influence on China in 2013 trade deficit Up to 52 billion US dollars, ranking first among all Japanese trade partners. Saudi Arabia and Qatar, which export oil and gas to Japan, rank second and third respectively.

Although the increasing import of energy in Japan since 2010 is the main reason for the deterioration of Japan's trade balance, Japan's huge trade deficit with China also constitutes a major factor. According to data from Morgan chase, Japan's trade deficit amounted to 18 trillion yen (US $78 billion) during that period, while Japan's trade deficit with China accounted for 26% of JPMorgan.

The Japan External Trade Organization, which is under the Japanese government, said that bilateral trade in 2014 is expected to grow for the first time in three years. China's data show that bilateral trade between China and Japan increased by 10.6% over the same period last January.

In 2012, the long-standing territorial disputes between China and Japan broke out, causing Chinese consumers to boycott Japanese goods at home, and trade relations between the two countries were damaged. In 2013, trade between Japan and China dropped by 6.5% due to the continued cooling of Sino Japanese relations and the slowdown in China's economic growth. However, China is still Japan's largest trading partner, followed by the United States and South Korea.

Japan's trade promotion agency said that sales of Japanese cars were hit hard by the boycott of Japanese goods and are beginning to pick up.

Japan's trade promotion agency quoted China's auto sales data as saying that the share of Japanese cars in the Chinese new car market increased to 19.7% in December from the low of 7.6% in October 2012, and nearly returned to its recent peak of 23.2% in July 2011.

However, with the rebound in trade relations between China and Japan, China is expected to become the main beneficiary. Japan's imports of smart phones and other products to China may grow even faster compared with the export growth of Japanese automobile, construction and mining equipment.

Yoichi Maie, head of Chinese market research at the Japan Trade Promotion Agency, stressed that Japanese companies need to explore new business areas.

He pointed out that Chinese Market Widely recognized Japanese goods will continue to sell well. Gym shoes Sales of leisure products such as camping products also benefit from the growing purchasing power of Chinese consumers. Chinese consumers are spending more time on leisure and entertainment.

Take the Ninja motorcycle produced by Kawasaki Heavy Industries as an example, its sales volume increased by 19 times in 2013. The Japanese wig is also one of the best sellers, and sales increased by seven times in 2013.

Maie said that Japan's export products can not be static. These products will eventually be replaced by local products in the export market. Only by exploring new areas can Japanese exports grow.