Japan Posts Largest Monthly China Trade Deficit
Created: 2012-11-21 11:52 EST
Today (November 21) Japan announced a trade deficit of $4.9 billion in October with China. It’s the largest ever monthly trade deficit Japan has recorded with is main trading partner.
It follows heated anti-Japanese protests in China, sparked by the Senkaku/Diaoyu Islands dispute.
Chinese citizens called for a boycotted of Japanese-made goods. Since then, Japanese carmaker have been cutting local production and sales forecasts.
Japan’s Ministry of Commerce said auto exports were down 82% from a year ago. The boycott has also adversely affected the machinery and manufactured goods sectors. They dropped by 20% and 17% respectively.
Japan’s overall trade deficit also increased to $6.6 billion. It’s the fourth month in a row that the deficit has grown.