It really doesn’t matter does it, if Japan is simultaneously trading with China and Russia? Trade between Japan and Russia has quadrupled the last decade. In 2013, trade between Japan and Russia reached a record-high $34.8 billion, but then in 2015 the volume dropped by almost 40 percent. The drop was due to falling oil prices. Japan and Russia are working together on what is called the green corridor to increase trade between the two countries.
Also, Japanese companies have invested and operate in the Russian automobile and construction industries which is rarely looked at by western observers who continue to trash Russia in the western media. About 14 percent of all Russian cars are produced in Russian factories by Japanese manufacturers. If it wasn’t for western sanctions against Russia, Japan would be opening the flood gates of trade and cooperation with Russia. Always the vassal state of the Anglo-Americans, Japan placed visa bans on 23 Russian citizens including government officials in the last year or so. That isn’t going to be in your favor Japan when you attempt negotiating with Russia.
Then we come to trade between Japan and China. According to analysis on Japan-China trade in 2015 that I just looked at from import data from the Trade Statistics of Japan by the Ministry of Finance and the China Customs Statistics, total trade between Japan and China decreased by 11.8% to $303.3 billion, it was a “double-digit fall for the first time in six years (since 2009), the year following the financial crisis in the US. Exports from Japan dropped in almost every area except in food. What is the future between Japan and Russia and Japan and China trade? Can only guess but as Japan weans itself from Anglo-American dependence, hopefully the three countries will be able to settle their differences and get on with beneficial trade and commerce.
Trade With Japan Collapses: Exports Decline 7th Month, Imports Decline 16th Month
May 22, 2016
by mishgea | May 22, 2016 11:41:20 | Economics ≈ 15 Comments
Abenomics is back in the spotlight tonight.
Global trade with Japan has collapsed. Exports are down and imports are down even more.
The result is an unexpected rise in Japan’s trade surplus, yet another failure of abenomics.
Japanese Output Shrinks at Fastest Pace Since 2012
The Markit Japanese PMI shows Output falls at fastest rate in over two years, underpinned by a sharp
drop in new orders.
• Flash Japan Manufacturing PMI™ at 47.6 (48.2 in April). Flash headline PMI signals sharpest decline in operating conditions since December 2012.
• Flash Japan Manufacturing Output Index at 46.9 (47.8 in April). Production decreases at most marked rate in over two years.
Bloomberg reports Japan April Trade Surplus 823.5 Billion Yen, Beats Estimates.
Japan’s exports fell for a seventh consecutive month in April as the yen strengthened, underscoring the growing challenges to Prime Minister Shinzo Abe’s efforts to revive economic growth.
Overseas shipments declined 10.1 percent in April from a year earlier, the Ministry of Finance said on Monday. The median estimate of economists surveyed by Bloomberg was for a 9.9 percent drop. Imports fell 23.3 percent, leaving a trade surplus of 823.5 billion yen ($7.5 billion), the highest since March 2010.
Trade With Japan Collapses
Clearly those stats are not worthy of comment. Thus, there was no comment.
Comments or not, those stats are precisely what is behind the Japan-USA feud on the unwelcome, disorderly strength of the Yen from the perspective of Japan.
For further discussion of the meaning of disorderly, please see US and Japan Feud Over Yen, Devaluations, and Meaning of “Orderly”.
Mike “Mish” Shedlock