China
        

From Chinese media

Quake's effects on China trade temporary

Updated: 2011-03-22 17:40

By Ren Jie (chinadaily.com.cn)

Twitter Facebook Myspace Yahoo! Linkedin Mixx

The 9.0-magnitude earthquake and tsunami in Japan will not have long-term effects on the country's trade volume and pattern with China. But China's imports from Japan may be influenced in the short term, Economic Information Daily reported Tuesday.

China's imports of Japanese cars, auto parts and electronic products may drop in the short term, but its exports may increase as Japan starts full-scale reconstructions, according to the report.

As one of Japan's most important trade partners, China imports high-quality metal, automobile parts, and electronic products from Japan, and it exports crude oil, coal and textile products.

Direct imports may feel the affects the most, said Song Hong, head of the international trade section at the Chinese Academy of Social Sciences. But China also imports some Japanese products through other markets, such as South Korea. Song said indirect imports will not be affected.

China's electronic and automobile industries may suffer from the calamity, as 40 percent of Japan's exports to China were electronic products, said Lu Zhiming, a Bank of Communications analyst. Some analysts predicted that the decline of imports may cause prices to rise in the Chinese market, which may increase domestic business costs. However, China may consider importing from other countries to fill shortages. Lu said most of Japanese products could be substituted, so he believes the catastrophe will have little impact on China's market.

Related readings:
Quake's effects on China trade temporary China's economy feels effects of Japanese quake
Quake's effects on China trade temporary Chinese firms still producing Japanese cars
Quake's effects on China trade temporary Electronics delivery delayed by quake
Quake's effects on China trade temporary 
Chinese supplies feed survivors in Japan

Meanwhile, analysts said China's exports to Japan will increase, as the country may need more materials for reconstruction.

The devastation caused by the quake and tsunam could cost Japan $235 billion, which accounts for 4 percent of its GDP, the World Bank reported Monday. It estimated reconstruction work may take five years.

Bai Ming, a researcher with the Ministry of Commerce, told the newspaper that the exports of agricultural products to Japan will increase as the country's demand for Chinese rice, vegetables and meats surges.

Japan may increase its imports of construction materials from China as some buildings and infrastructure were damaged during the disaster, analysts said.

However, in the long term, the trade pattern between China and Japan will not be changed by the quake. The comparative advantage for the two countries in international trade will likely stay the same, Bai said.

Commerce Minister Chen Deming said the quake's influence on China will be temporary, and Japan will maintain its trade surplus with China.

In 2010, China's exports to Japan totaled $121.06 billion, and imports reached $176.71 billion. Statistics show China posted a trade deficit of $55.65 billion with Japan.

E-paper

City of Joy

Welcome to the 'world of smiles' where life meanders slowly.

Preview of the coming issue
Debate on nuclear power revived
The future is now

European Edition

Specials

Beloved polar bear died

Berlin's beloved polar bear Knut, an international star died Saturday.

Panic buying of salt

Worried Chinese shoppers stripped stores of salt on radiation fears.

'Super moon'

The "Super Moon" arrives at its closest point to the Earth in 2011.

High spirits
Hitting the right note
Fields of hope