Blog: Dave LeggettJapanese exports take a big China hit

Dave Leggett | 22 October 2012

The territorial dispute between China and Japan and the subsequent falling out between the two is resulting in a big drop in exports from Japan to China. 

The latest stats show that in September, exports of vehicles from Japan to China were down a whopping 44% on last year. Some commentators are saying that October's figures will be even worse.

China is Japan's largest export market for goods and services, so a prolonged slump in exports to China will cause concern in Tokyo. There's some speculation that it might make a new fiscal stimulus package more likely, given the weakness of the Japanese economy.

For the Japanese carmakers problems in China come as they struggle with the ongoing impact of the high yen and still sluggish demand at home.

I guess one flipside will be that someone will be plugging the gap in the Chinese market caused by lower sales of Japanese brand cars. Who will that be?


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