Economic relationship between China and Japan
DanxuewenZhu
Economic relationship between China and Japan
General situation
China is the world’s largest developing country (China.org.com, 2011) and Japan is the major economic entity .They play an important role in both region and world economy. Japan is one of China’s important neighbors. In 2006 former Japanese Prime Minister Shinzo Abe visited China. This visit is called “ice-breaking journey” (Xinhua, 2007). After that journey, Sino-Japanese political relations has been warmed, and bilateral economic and trade relations are also well off. Economic and trade relationship between the two countries has formed a mutually beneficial and win-win situation. However, under the circumstance of warm political relation, there was a certain degree of heat politics and cool economy phenomenon.
Trade volume
From point of Sino-Japanese trade volume, the development of Sino-Japanese trade is in good condition. Affected by the financial crisis, the rate of growth of Sino-Japan trade decreased slightly, but the absolute amount has remained increase. As the figure following shows, China and Japan’s bilateral trade increased expect year 2009 and the surplus has the intendancy of inclining.
Figure 1 China and Japan’s bilateral trade
Data from Foreign Investment China of Ministry of Commerce,2012
Commodity structure
Sino-Japan trade commodity structure is stable. China’s export mainly concentrated in the mechanical and electrical products, textiles and raw materials, base metals and products, furniture, toys and chemical products. Japan’s main export products to China focused on mechanical and electrical products, base metals and products, chemical Products, transport equipment, plastic and rubber (Nam, 2004).
Trade methods
Processing trade is the main methods of trade between China and Japan (Eu SME Centre, 2011). The rapid development of trade is largely based on the background that China has become the production basement of Japanese industries. Japanese
Economic relationship between China and Japan
General situation
China is the world’s largest developing country (China.org.com, 2011) and Japan is the major economic entity .They play an important role in both region and world economy. Japan is one of China’s important neighbors. In 2006 former Japanese Prime Minister Shinzo Abe visited China. This visit is called “ice-breaking journey” (Xinhua, 2007). After that journey, Sino-Japanese political relations has been warmed, and bilateral economic and trade relations are also well off. Economic and trade relationship between the two countries has formed a mutually beneficial and win-win situation. However, under the circumstance of warm political relation, there was a certain degree of heat politics and cool economy phenomenon.
Trade volume
From point of Sino-Japanese trade volume, the development of Sino-Japanese trade is in good condition. Affected by the financial crisis, the rate of growth of Sino-Japan trade decreased slightly, but the absolute amount has remained increase. As the figure following shows, China and Japan’s bilateral trade increased expect year 2009 and the surplus has the intendancy of inclining.
Figure 1 China and Japan’s bilateral trade
Data from Foreign Investment China of Ministry of Commerce,2012
Commodity structure
Sino-Japan trade commodity structure is stable. China’s export mainly concentrated in the mechanical and electrical products, textiles and raw materials, base metals and products, furniture, toys and chemical products. Japan’s main export products to China focused on mechanical and electrical products, base metals and products, chemical Products, transport equipment, plastic and rubber (Nam, 2004).
Trade methods
Processing trade is the main methods of trade between China and Japan (Eu SME Centre, 2011). The rapid development of trade is largely based on the background that China has become the production basement of Japanese industries. Japanese
References: Eu SME Centre (2011), Processing trade in China. Available from: http://www.eusmecentre.org.cn/content/processing-trade-china [Accessed: July 2, 2014]. Foreign Investment China of Ministry of Commerce (2012), Available from:, Web site: www.fdi.gov.cn/pub/FDI/wztj/wstztj/lywzfgbdqtj/t20070117_72454.htm [Accessed: July 2, 2014]. Japan 's Ministry of Finance (2014), Processing trade in China. Available from: www.mof.go.jp/english/index.html [Accessed: July 2, 2014]. Sang-yirl Nam, Research fellow (2004), Trade Structure and Trade Potential Between China, Japan and Korea. Korea Institute for International Economic Policy (KIEP).Working Paper Series Vol. 2004-40.December 2004 Xinhua (2007), Chinese Premier calls his coming visit to Japan an "ice-melting journey". Available from: http://news.xinhuanet.com/english/2007-03/16/content_5933483.htm [Accessed: July 2, 2014]. Xinhua (2011), China still largest developing country in world. Available from: http://www.china.org.cn/china/CPC_90_anniversary/2011-07/01/content_22900897.htm [Accessed: July 2, 2014].