China’s imports from Japan decline
According to data from the Japanese Finance Ministry,
China's steel imports from
Japan decreased 18% year on year in April.
Inflated inventory in
China, some 72.4% above 2004's levels, has been singled out as the main culprit in the declining imports from
Japan.
To make matters worse,
China's automobile imports from
Japan decreased 25% in April, according to the Dai-ichi Life Research Institute of
Japan. Tighter restrictions on dealer and consumer loans are being blamed for the decrease in autos coming from
Japan.
Furthermore,
construction machinery imports from
Japan followed up March's 65% year-on-year drop with a 47% year-on-year decline in April.
The Dai-ichi Institute expects Japanese exports of steel and transport machinery to take almost six months to recover. On the other hand, it may be a year or more before general machinery exports from
Japan pick back up.
Exports to
China account for 13 percent of
Japan's total, second only to 22 percent for the United States.