China has been Japan’s largest trading partner for 12 consecutive years

China has been Japan's largest trading partner for 12 consecutive years

“2020 China-Japan Trade and Investment Cooperation Report” was released on the 25th in Dalian, Liaoning Province.

The report pointed out that in 2019, China and Japan have stepped up efforts to stabilize foreign trade and strengthen mutual economic and trade relations. With the joint efforts of both sides, the momentum of recovery in China-Japan trade cooperation has been consolidated. Japan has become China’s second-largest trading partner in goods for four consecutive years. China has become Japan’s largest trading partner in goods for 12 consecutive years.

The report was coordinated by the China-Japan Business Council Liaison Office and the Dalian Branch of the China Council for the Promotion of International Trade and was compiled by Dalian Hanwen Information. Based on big data resources and related technologies, the report uses a total of 400 million original data to objectively analyze the situation of Sino-Japanese trade and investment cooperation, and invites authoritative experts in the field of Sino-Japanese economic and trade research to analyze and interpret, and provide forward-looking guidance and suggestions.

The report shows that due to the impact of the rise of trade protectionism on economic globalization, both China and Japan are facing major changes unseen in a century, and they are inevitably affected by external factors. In 2019, the total trade volume between China and Japan was US$314.6 billion, a year-on-year decrease of 4%.

From the perspective of Sino-Japanese local cooperation, Shanghai, Jiangsu, Guangdong, Zhejiang, and Liaoning rank in the top five in the ranking of China’s provinces, autonomous regions, and municipalities in cooperation with Japan. Among them, Jiangsu Province has the highest export value to Japan, and Hunan Province has the largest export value growth rate; Guangdong Province has the highest import value from Japan, and Qinghai Province has the largest import value growth rate. Among the prefectures and prefectures in Japan, Osaka Prefecture has the highest export value to China, and Kochi Prefecture has the largest export value growth rate; Tokyo has the highest import value from China, and Miyazaki Prefecture has the largest import value growth rate.

The report analyzes that in 2019, China’s export of computer equipment to Japan reached the highest value of 9.75 billion U.S. dollars, an increase of 17.1% year-on-year. China’s main export destinations are Sichuan, Jiangsu, and Shanghai, while Japan’s main import destination is Chiba County; China’s import of integrated circuits from Japan had the highest trade volume, reaching $17.3 billion, an increase of 10.2% year-on-year. China’s main import destinations were Shanghai and Guangdong Province, while Japan’s main export destination was Osaka Prefecture.

In addition, the report also provides an in-depth analysis of the advantageous commodity trade between China and Japan. Among them, Jiangsu Province is in a leading position in the electronics manufacturing industry and automobile manufacturing industry, Shandong Province and Jiangsu Province have advantages in the textile and garment industry, Guangdong Province has a higher export share in the household appliances and household goods industry, and Liaoning Province is in the steel manufacturing industry. The advantages are obvious. In Japan, electronic products are mainly imported from Chiba Prefecture, automobile products are mainly imported from Aichi and Fukuoka Prefectures, and consumer products are mainly imported from Tokyo and Osaka Prefecture.

The report pointed out that foreign-funded enterprises still play an important role in Sino-Japanese bilateral trade cooperation, but private enterprises’ exports to Japan have grown against the trend. In 2019, the export value of foreign-owned enterprises to Japan was the highest, reaching 82.4 billion U.S. dollars, accounting for 58% of total exports; the export value of private enterprises to Japan reached 48.6 billion U.S. dollars, a year-on-year increase of 4.6%. At the same time, foreign-funded enterprises also had the highest import volume from Japan, reaching 111.3 billion U.S. dollars, accounting for 65% of total imports.

From the perspective of Sino-Japanese investment cooperation, in 2019, Japan’s global direct investment flow was 226.7 billion US dollars, an increase of 58.3% year-on-year. Among them, investment in Europe and North America grew rapidly, while the flow of direct investment in China was US$12.8 billion, a year-on-year increase of 23.1%. According to micro-level data on newly registered companies, Japan ranks first in the number of newly established companies and investment amount in Jiangsu Province, and Tokyo is one of the preferred registration places for most Chinese newly established companies in Japan. From the perspective of industry structure, Japan has the largest number of newly established manufacturing companies in Jiangsu Province, and the largest number of newly established wholesale and retail companies in Shanghai.

The report specially invited the former Chinese Commercial Counselor in Japan and the Vice President of the National Economic Association of Japan, Lu Kejian, to write the title of “Review of Sino-Japanese Economic and Trade Relations in 2019 and Prospects for 2020”. The article pointed out that as the world’s second and third-largest economies, China and Japan should jointly shoulder responsibilities, take a long-term view, overcome difficulties, seek common ground while reserving differences, increase mutual trust, strengthen cooperation, promote multilateralism, and work together. Respond to the times, take advantage of the trend, fully release the potential of cooperation, expand higher-level mutually beneficial cooperation, promote the continuous improvement and healthy development of China-Japan relations, achieve peace, friendship, and common development between China and Japan, and serve the common interests of mankind and world peace and prosperity Make greater contributions.

In addition, the report also specially invited Kasui Suuo, Chairman of Japan Association for the Promotion of International Trade, Noriyoshi Kohara, Chief Economist of Japan Institute of International Trade and Investment, President and Chief Editor of “China Automobile Industry” Magazine/Deputy of China Machinery Industry Management Association Secretary-General Li Miaomiao wrote the topic “China-Japan Economic Cooperation under Sino-US Contradictions-Possibilities and Limits-“, “Encountering the Unknown, How to Deal with China”, “China-Japan Automobile Cooperation in the Post-epidemic Era, Promising Prospects” report.

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