Japan’s triple tragedy to impact China & India trade
March 18, 2011
  • 7.7% o China trade is with Japan, or 2.1% of GDP in 2010.
  • 1.9% of India trade is with Japan, or 0.3% of GDP in 2010.
  • China exported US$97.9 billion in goods and services to Japan in 2009.  8.1% of China’s total export value; 12.7% of China’s imports come from Japan, or 3% of GDP in 2010.
  • China’s top exports to Japan including, in order, electrical machinery and appliances, clothing, power generating machinery and equipment.
  • India exported US$3.2 billion to Japan in 2009. 1.8% of India’s total export value; 2.5% of India’s imports come from Japan, or 0.5% of GDP in 2010.
  • China and India’s main import requirements from Japan are capital goods, with China being a much bigger buyer. India’s biggest export to Japan is oil, but only accounts for 0.5% of the total value.

Even as Japan fights against time to avoid a nuclear disaster, Asian economies are beginning to understand the impact the Japanese catastrophe will have on their economies.  Compounding inflation rates from the crises in the Middle East, analysts expect commodities,  the automobile and technology sectors, Japan’s strongholds to be most affected.

Closures of Japanese factories, and a fear that they will have to bear the brunt of financial aid in Japan, will affect deliveries of everything from Prius hybrid cars to the flash chips that go into iPhones and iPads. While tourism will be affected at a time when everybody wants to holiday in Asia, Japanese restaurant owners  in the region are being affected as supplies of Japanese specialty foods are cut.

Power cuts which will carry on until April are further expected to drown companies and factories that look to Japan as a high-quality manufacturing base. Regional rubber-industry leaders have also called a special meeting likely to be held later this week to try to arrest a sharp drop in rubber prices amid expectations of weaker demand in Japan.

Steel companies however expect to see prices rise on Japanese demand. Executives at India’s Essar Steel Ltd. and Chinese state-run Baosteel said Tuesday they expect exports of finished steel to Japan to climb in the coming months as the country rebuilds and owners of wooden buildings along Japan’s coastline replace them with sturdier structures.

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