March 14,2011

Japan Quake Won't Have Big Impact on China-Japan Trade

By CSC staff,Shanghai
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Chen Deming,the Minister of Commerce, said Japan quake won't have big impact on China-Japan trade, and any impact would be temporary. Comment: About 8% of China's exports go to Japan and 12% of China's imports are from Japan. Most of China's exports to Japan are truly consumed in Japan, but perhaps half of Japan's exports will eventually end up in other countries because China is only used as assembly by some top Japanese companies. Will China's exports to Japan fall significantly after the quake? Most likely not. Actually China's Japan-bound exports might even pick up to substitute for loss in Japan's production. After the Kobe earthquake in January 1995, China's Japan-bound export growth surged to 65% YoY in 1Q95 from 39% in 4Q94. China's imports from Japan could be affected due to shutdown of factories which provide upstream parts to China.

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