Germany’s exports to China skyrocket while Japan’s fall flat
After rising in lockstep, two countries take divergent China trade paths
Germany is taking advantage of China’s continued growth, while Japan turns elsewhere, or is turned away. A concerted effort on the part of Japan to diversify investment away from China, coupled with anti-Japanese sentiment in China has meant all the more pie for Germany.
According to data from the Japan Bank for International Cooperation from last year, around 56% of Japanese firms planned to expand in ASEAN from 2016-2019, while the share of companies planning to do so in China dropped to 48%.
The JBIC survey cited growth potential of Southeast Asian markets as the paramount factor, but businesses may also have been banking on the Trans-Pacific Partnership, and worried about a China slowdown, neither of which have materialized.