Japan's machinery exports to China cool down or slow down

The Citigroup Global Markets Japan Company stated that the slowdown in Japan’s mechanical export growth to China indicates that Asian demand has become weak, and this may threaten the Japanese economy, which is gradually recovering from the March earthquake.

Shows that in May Japan's general machinery exports to China fell to 242.1 billion yen (3 billion US dollars), the lowest in four months, the data comes from the Japanese Ministry of Finance. Exports of engines and construction machinery and other equipment account for 26% of Japan’s total exports to China. China is Japan’s largest exporter of goods. The chart also shows that the year-on-year changes in Japan’s overall exports have continued to decline in the past three months.

The monetary policy tightening in China and other emerging market countries may slow down its economic growth, suppressing stocks of Japanese machinery makers by more than 10%.

Japan’s exports to China in May decreased by 8.1% year-on-year, the largest drop since October 2009. Exports to Asia decreased by 8.7%. Many Asian countries from South Korea to India have raised interest rates to curb inflation. In May, Japan’s overall exports fell by 10.3%, which was an improvement over the 12.4% decrease in April.