According to statistics released by the Ministry of Finance on July 20, 2023, the Japanese trade deficit reached 6.96 trillion yen in the first half of this year due to the growth of imports over exports, and the Japanese trade deficit has continued since the second half of 2021.

Although the trade deficit in the first half of this year decreased by 12.9%, the deficit in the first half of this year remains huge as the deficit in the first half of 2022 reached a record high.

However, monthly data show that in June 2023, Japan achieved a trade surplus of 43 billion yen, the first surplus since July 2021.

At the same time, Chinas export orders to Japan declined more than the overall level, with Chinas exports to Japan of $124.91 billion in June 2023, down 14.3% compared to the first half, and exports to Japan of $793.4 billion, down 4.7% compared.

However, Japans exports amounted to 8,744 trillion yen in June, an increase of 1.5% compared to about $69.9 billion, equivalent to 22% of Chinas exports in June.

In June, in the amount of imports and exports measured in yen, exports grew slightly, up 1.5 per cent, while imports continued to decline in two digits, down 12.9 per cent.

Japans exports to China and ASEAN continued to decline dramatically, with exports to China declining by 11% (seven consecutive months) and exports to ASEAN declining by 6.7%. On the other hand, Japans exports to the United States and the EUined a two-digit growth, rising by 11.7% and 15.5% respectively.

In June 2023, Japans trade surplus was mainly due to the increase in exports of automobiles and other vehicles, as well as the trend of rising resources prices to stabilize, leading to a decrease in crude oil and other imports.