JOC 24/1/08

China passes U.S. as Japan's top trade partner

TOKYO -- China surpassed the United States as Japan's largest trading partner for the first time on a calendar year basis in 2007, with bilateral trade reaching nearly 28 trillion yen, according to preliminary figures released by the Finance Ministry on Thursday.

Trade with the U.S. totaled 25.24 trillion yen, as exports declined 0.2 percent to 16.90 trillion yen and imports grew 5.4 percent to 8.34 trillion yen. Japan's trade surplus with the U.S. shrank for the first time in four years, narrowing 5.1 percent to 8.56 trillion yen.

Japan's trade surplus with the rest of the world grew for the first time in three years, rising 37 percent from the previous year to about 10.82 trillion yen (US$102 billion).

The Finance Ministry figures are given only in yen.

Total exports totaled 83.94 trillion yen, up 11.6 percent, while imports reached 73.12 trillion, up 8.6 percent, both records.

The growth in exports was driven by automobiles, steel and telecommunications equipment, while imports were led by crude oil, liquefied natural gas and telecommunications equipment.

Although exports to the U.S. dropped slightly and overall imports increased due primarily to higher oil prices, brisk exports to the rest of Asia, especially China, and the 27-nation European Union contributed to the widening of Tokyo's overall trade surplus.

Trade with China, excluding Hong Kong, totaled 27.86 trillion yen, as exports surged 19 percent to 12.84 trillion yen and imports gained 9 percent to 15.02 trillion yen. As a result, Japan's trade gap with China totaled 2.18 trillion yen, shrinking 26.9 percent, the second year in a row it has narrowed.