US Overtakes China As Japan's Top Export Market

Tyler Durden's picture

Demand for Japanese goods in China have plunged across the board since the Senkaku Islands dispute has led to widespread Chinese boycottts of Japanese products. As the FT reports, the last 12 months have seen shipments to China plunge over 9% to JPY11.3tn. But have no fear, the credit-loving, all-consuming US citizen stepped up to the plate (though we note not enough since Japan's trade balance has crashed anyway) buying cars, car parts, and electrical machinery. Exports to the US have risen over 10% in the last year to JPY11.4tn - now larger than China. This is the first time since May 2009. Clearly the slowdown in the Chinese economy is also exacerbating the problems for Japan but one analyst warns, "this weakness is structural, not cyclical." The IMF's chief economist was hardly optimistic, noting that the US overtaking China was a "big change" in light of a longer-term trend to deeper intra-Asia integration - "I hope the clouds clear soon." We are sure Abe is watching closely as the US economy also rolls over.


The USA overtakes China s Japan's Top Export Market...


As the two nations diverge dramatically...


It is worth noting that while the JPY has devalued 30% in the last 6 months, it has done little to spur significant shifts during that time - look at YoY changes which are pretty much flat (in second derivative terms) which is also reflected in the deterioration of Japan's trade balance overall...


Charts: Bloomberg

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Dollar Bill Hiccup's picture

What a surprise!

Have to keep the vassal states in business.

Boris Alatovkrap's picture

Japan is make good stuff! Better than Chinese crap to break!

CPL's picture

Radioactive everything doesn't make it better, just defers the real cost.


Where does a laptop sit most of the times?  Best birth control method ever.

Never One Roach's picture

So when does USPS start ordering only Japanese cars instead of GMs? 

stinkhammer's picture

why was the saudi national deported ASAP?

Boris Alatovkrap's picture

Q: How many Saudi National to screw incandescent bulb?

A: One, but does by remote cell phone trigger.

matrix2012's picture

Such relentless Nihon glowing-in-the-dark gifts from Fuki are generously distributed worldwide, not only for the Amerikan, though one may safely assume that the Amerikan consumers get the most among the foreign recipients.

earleflorida's picture

the ole sayin... keep your freinds close but your enemies closer has officially been 'bernak`'D ?! 

Seasmoke's picture

that cannot be good......i never see anything with made in Japan tags on them

buzzsaw99's picture

"They" can devalue their way to prosperity because "they" get all the new Yen while everyone else gets the devaluation.

Stuck on Zero's picture

Yep.  And Americans lose their jobs and have to borrow money to buy the Japanese exports.


matrix2012's picture

C'mon, if somebody does approach me with such enormous very cheap credit offer under extended term (basically i know that i won't need to pay it back during my lifetime) to allow me to extravagantly consume all the latest and the most sophisticated stuffs and gadgets provided by that Samaritan, i will happily welcome him or her and showing my sincere and deep gratitude!

TeamDepends's picture

Do they call him "Honest Abe" in Japan?

bigdumbnugly's picture

yes but they seem to be a bit confused...

they also say he chop down cherry tree and cannot tell a rye.

Never One Roach's picture

Yeah, UNG is making a nice recovery....perhaps good time to add this commodity?

HD's picture

I have to ask - what other than Playstations and plastic robots is Japan exporting to the US?

hedgeless_horseman's picture





Why play with rubber dogshit from China, when you can have iPets from Japan!

Kaiser Sousa's picture

wait, you mean the US still exports somethin"???

oh yeah, i forgot -....Honey Boo Boo 

kaiten's picture

Back to future.

sudzee's picture

Many US outfits setting up in Canada. Healthcare is universal here so overall labour cost is much cheaper.

NotApplicable's picture

I LOLed.

Cost-free universal healthcare, now there's an oxymoron if I ever saw one. Here's a clue, when costs are transferred from consumers onto others, there is NEVER a decrease in price. All that's happening is the US corps are helping to further hollow out your society in a manner you cannot quantify.


Good luck with that. You're gonna need it.

Dr. Engali's picture

Speaking of Japanese exports..I just recieved my Japanese robotic girlfriend Via Fedex


edit : Don't tell my wife. She will be pissed that I spent that kind of money.

Never One Roach's picture

It's ok, Doc. I bet her sweet Japanese doll lips are sealed....she'll never tell on ya.

DaveyJones's picture

so chinese consumers... are not as economically stupid as their US counterparts?

AnAnonymous's picture

This is an 'american' world and it is organized so that the US market is the ultimate consumption sink in the world.

Will put quite a lot of pressure of US borders for sure.

Be outside the US and your consumption is jeopardized.

TheFourthStooge-ing's picture

This is a Chinese citizenism world and it is organized so that the roadsides are the ultimate excretion sink in the world.

Will put quite a lot of pressure on Tibetan borders for sure.

Crap elsewhere than the roadside and your Chinese citizenism is jeopardized.

fijisailor's picture

Wonderful.  Time to buy a geiger counter to check everything I buy for Fukushima products.

Glass Seagull's picture



You buy our stocks and bonds, we buy your wares, invite you to TPP negotiations, and tell China that we'll stand by our man (in Japan).

Essential Intelligence's picture

The US (CIA) has just begun an assault on Chinese interests in the Levant : the two biggest Israeli gas finds - Leviathan and Tamar - lie off 130 and 80 kilometers from the port city of Haifa. While Leviathan is estimated to hold reserves of 16 tcf of gas, Tamar's reserves amount to at least 8.4 tcf. (Recently, two more gas fields - Sarah and Mira - were discovered off the port city of Hadera further south of Haifa.) Chin is supposed to construct a new railroad that would facilitate transfer of liquefied natural gas from Israel's Mediterranean coast to the Red Sea coast from where they can be shipped across the Indian Ocean to energy hungry China. Explosive details here

Super Broccoli's picture

those chineses will never understand the magic of "buy now, pay later" !

buzzsaw99's picture

they understand "buy bonds, pay rater" though.

chinaboy's picture

The real topic: Japan is losing grip on Chinese market.

The Dancer's picture

Another take...are sides being taken for the next war....or is that too simple...

NoWayJose's picture

Are we really able to track the difference between a Chinese company selling us a product made in China, versus a Japanese company that off-shored production to a factory in China and that sells us the same product?  Or for that matter, is it really an 'import' if we are buying a product from an American company that off-shored production into China and is selling us the same product too?

oak's picture

china must be extremely pleased with this situation: a) transfer the trade deficit with usa to japan, b) less purchase commitment on the us treasury, and c) larger japanese yen depriciation.  it all becomes japan and usa trade issue to open japanese market through tpp negotiation. abe is not that intellegent after all.

RaceToTheBottom's picture

Could it be that unethical US MBA shisters find buying radioactive products for unsuspecting US sheep consumers driven only by price????   No, that would never happen.....?