TOKYO -- China for the first time in 60 years has replaced the United States as Japan’s largest trading partner, according to preliminary figures released by Japan’s Finance Ministry. The figures, released on Wednesday, showed that Japan’s trade with China, excluding Hong Kong, rose 16.5 percent to 25.42 trillion yen (about $213.6 billion) in the fiscal year ending March 31 from a year earlier, while trade with the U.S. increased 10.3 percent to $211.4 billion. It was the first time since World War 2 that China led the U.S. as Japan’s top trade partner.
The trade data are measured on a customs-cleared basis before adjustment for seasonal factors.
Since fiscal 2004, Japan’s trade with China, including Hong Kong, has been greater than that of the U.S. Japan's exports to China soared 21.2 percent to a record 11.31 trillion yen in fiscal 2006, while imports from China increased 13 percent to a record 14.11 trillion yen. Japan’s trade deficit with China shrank 11.2 percent from the previous year. Japan’s trade surplus with the U.S. rose for the third consecutive year, increasing 13.5 percent to 9.09 trillion yen in fiscal 2006, the second-highest level ever.
Japan’s trade surplus with the rest of the world widened 16.4 percent to 9.05 trillion yen after tumbling 31.4 percent in fiscal 2005. Exports grew 13.4 percent while imports gained 13 percent, the fifth straight year of record highs. In March, Japan’s trade surplus rocketed 73.9 percent from a year earlier to about 1.63 trillion yen. Exports climbed 10.2 percent to 7.51 trillion yen, while imports were flat at 5.87 trillion yen.
