Japan reported its first annual trade deficit since 1980 as it imported expensive energy to offset shortfalls caused by the devastating tsunami and manufacturers shifted production overseas to avoid the damage inflicted by the strong yen.
The ￥2.49 trillion (US$32 billion) deficit for last year reflected a 2.7 percent decline in the value of Japan’s exports to ￥65.55 trillion. Last month, the trade balance was a deficit of ￥205.1 billion, according to the Ministry of Finance figures released yesterday.
“It reflects fundamental changes in Japan’s economy, particularly among manufacturers,” said Hideki Matsumura, senior economist at Japan Research Institute. “Japan is losing its competitiveness to produce domestically.”
“It’s gotten difficult for manufacturers to export, so they’re they’ve moved production abroad so that products sold outside the country are made outside the country,” he said.
The yen’s surge to record levels against the dollar and euro has made Japanese exports more expensive and also erodes the value of foreign earned income when brought home. Recently, Nissan Motor Co and Panasonic Corp have shifted some of their output to factories overseas.
At the same time, Japan is facing intense competition from Taiwan, South Korea and Singapore, where labor and production costs are cheaper.
Japanese manufacturers have been battered by a host of negatives in the past year. The tsunami temporarily disrupted the production of automobile makers and others. Weakness in the US economy and Europe’s debt problems and recent flooding in Thailand, where many Japanese automakers have assembly lines, also contributed to export declines.
Another major factor behind the figures was the impact of the expensive energy imports Japan turned to after the March disaster touched off a nuclear crisis and led the country to shut down, or not restart, a large portion of its reactors, said Martin Schulz, senior economist with the Fujitsu Research Institute.
He said pressure to import energy will continue to weigh heavily on Japan for the next year, but will subside as the country pursues greater efficiency measures.
Much of Japan’s oil and natural gas is imported from the Middle East, with which Japan had a ￥10.88 trillion trade deficit last year, up 33 percent, figures showed.
Japan still has a trade surplus with the US, although that is shrinking. For last year, exports exceeded imports by ￥4.10 trillion, down 8.2 percent from a year earlier. Exports to the US declined 2.8 percent to ￥10.02 trillion during the year, while imports inched up 0.2 percent to ￥5.9 trillion.
NATIONAL SECURITY: The Chinese influencer shared multiple videos on social media in which she claimed Taiwan is a part of China and supported its annexation Freedom of speech does not allow comments by Chinese residents in Taiwan that compromise national security or social stability, the nation’s top officials said yesterday, after the National Immigration Agency (NIA) revoked the residency permit of a Chinese influencer who published videos advocating China annexing Taiwan by force. Taiwan welcomes all foreigners to settle here and make families so long as they “love the land and people of Taiwan,” Premier Cho Jung-tai (卓榮泰) told lawmakers during a plenary session at the Legislative Yuan in Taipei. The public power of the government must be asserted when necessary and the Ministry of
Proposed amendments would forbid the use of all personal electronic devices during school hours in high schools and below, starting from the next school year in August, the Ministry of Education said on Monday. The Regulations on the Use of Mobile Devices at Educational Facilities up to High Schools (高級中等以下學校校園行動載具使用原則) state that mobile devices — defined as mobile phones, laptops, tablets, smartwatches or other wearables — should be turned off at school. The changes would stipulate that use of such devices during class is forbidden, and the devices should be handed to a teacher or the school for safekeeping. The amendments also say
EMBRACING TAIWAN: US lawmakers have introduced an act aiming to replace the use of ‘Chinese Taipei’ with ‘Taiwan’ across all Washington’s federal agencies A group of US House of Representatives lawmakers has introduced legislation to replace the term “Chinese Taipei” with “Taiwan” across all federal agencies. US Representative Byron Donalds announced the introduction of the “America supports Taiwan act,” which would mandate federal agencies adopt “Taiwan” in place of “Chinese Taipei,” a news release on his page on the US House of Representatives’ Web site said. US representatives Mike Collins, Barry Moore and Tom Tiffany are cosponsors of the legislation, US political newspaper The Hill reported yesterday. “The legislation is a push to normalize the position of Taiwan as an autonomous country, although the official US
CONSISTENT COMMITMENT: The American Institute in Taiwan director said that the US would expand investment and trade relationships to make both nations more prosperous The US would not abandon its commitment to Taiwan, and would make Taiwan safer, stronger and more prosperous, American Institute in Taiwan Director Raymond Greene said. “The US’ commitment to Taiwan has been consistent over many administrations and over many years, and we will not abandon our commitment to Taiwan, including our opposition to any attempt to use force or coercion to change Taiwan’s status,” he said in an exclusive interview with the Liberty Times (the sister newspaper of the Taipei Times) on Friday last week, which was published in the Chinese-language newspaper yesterday. The US would double down on its efforts
RSS