Japan-China Trade Rises for 8th Year in a Row

JETRO, Japan External Trade Organization, announced that trade with China, Japan's second largest trading partner grew 11.5% in 2006, a bit less than the 12.7% of 2005, to $211 billion.

The United States makes up 17.4% of Japan's total trade. China will be number one this year with their trade now at 17.2% of Japan's total.

Exports were double in 2006 from 2005.  Electronic parts, automobiles and parts made up the bulk.

Import growth slowed to almost half of 2005.

Let's see, exports double, imports halve….not a good formula.

Still…Japan's trade deficit was down in 2006 to $25.5 billion from the record high in 2005 of $28.7 billion.

Japan's trade deficit with China is still one tenth that of the United States' trade deficit with the world's factory.

How come Japan can keep the trade deficit down but the United States can't?