Japan posted another trade deficit with China and Europe due to the continued strength of the yen and the economic problems the countries face. Japan’s recovery may be delayed due to the fact China growth has slowed and they are Japan’s major exporter. The increase in exports, for the 7th straight time, by 10.9% to the U.S. helped lessen the trade deficit, but only so much can be done with exports to one country. China’s imports from Japan were down 9.9% which fell for a fourth straight time and Europe was down 22.9% also falling from previous declines. It is to early to make a ruling on the Senkaku islands, but it will be very interesting to see what effect the islands will play in the international trade between China and Japan.
The graph to the right shows the trade deficit that Japan has run in comparison to other countries.