Japan's February Trade Balance Surpasses 12 Trillion Won Surplus... Sharp Decline in Chinese Imports Due to COVID-19

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Due to the impact of the novel coronavirus infection (COVID-19), Japan recorded a significant trade surplus in February. The surplus expanded as imports from China dropped to about half the usual level.

According to the Nihon Keizai Shimbun and others, Japan's Ministry of Finance announced on the 18th, through the "February Trade Statistics (preliminary figures)," that Japan's trade balance last month posted a surplus of 1.1098 trillion yen (approximately 12.8 trillion won), a 237.6% increase compared to the same period last year, returning to a surplus for the first time in four months on a monthly basis. Exports decreased by 1.0% year-on-year to 6.3216 trillion yen, but imports fell sharply by 14.0% to 5.2117 trillion yen, significantly increasing the trade surplus.

The decline in imports mainly occurred from China. In February, as COVID-19 rapidly spread within China causing production halts and supply chain disruptions, imports of parts and materials such as computer equipment components, automobile parts, steel, as well as daily necessities like clothing and food products, sharply decreased. Exports to China fell slightly by 0.4% to 1.1361 trillion yen, but imports plummeted by 47.1% to 673.4 billion yen due to significant decreases in clothing and telecommunications devices.

Specifically, clothing imports dropped by 65.7%, telecommunications devices centered on mobile phones by 45.3%, food products by 34.4%, raw materials such as lumber by 28.6%, and chemical products including pharmaceuticals by 43.5%. Raw materials and materials such as steel, non-ferrous metals, and textile yarn all decreased by more than 50%. Computer equipment imports fell by 54.4%, automobiles by 46.8%, and electronic components such as semiconductors by 18.1%.

In addition, for the United States, exports decreased by 2.6% to 1.2698 trillion yen, and imports declined by 5.9% to 643 billion yen. Trade with South Korea showed exports increased by 1.0% to 415 billion yen, and imports rose by 1.6% to 262.6 billion yen.

This content was produced with the assistance of AI translation services.