According to data released by the Japanese Ministry of Finance on 17 April, Japan’s exports grew by 7.3 percent in March, the fourth consecutive month of its exports.Export growth was mainly driven by strong shipments of automobiles and semiconductors, and the weakening of the yen and the recovery in demand in China were also important factors driving export growth.

Japan plays an important role in the global supply chain, especially in the automotive and semiconductor sectors. Recently, the global automotive industry’s demand has warmed up and the steady growth of the semiconductor market has provided a significant boost to Japan’s exports. Moreover, as the global economy is gradually recovering from the new coronavirus, the demand for high-tech and high-quality Japanese products is also gradually increasing.

However, despite exports showing growth momentum, Japans export and import trade receipts for the fiscal year 2023 showed a deficit of 5.89 trillion yen, a trade deficit for the third consecutive year. Trade with China was manifested as a deficit, reaching 5.9287 trillion yen. The analysis noted that the expansion of this deficit was largely due to a sharp decline in Japans food exports to China compared to 33.6%.

China, as Japan’s major trading partner, has a direct impact on Japan’s demand fluctuations. The decline in Japan’s food exports to China may be linked to factors such as changes in the Chinese market, adjustments in import policy and rising domestic production costs in Japan.In addition, global market uncertainties, including geopolitical tensions and currency fluctuations, also pose additional challenges to Japan’s exporters.

It is worth noting that, despite facing trade deficits, Japanese governments and are actively seeking solutions and adjusting strategies.The Japanese government may take further measures to boost export growth and improve trade balance, including through negotiations to reduce trade barriers, support technological innovation in key industries, and strengthen economic cooperation with major trading partners.

Experts believe that while the weakness of the yen improves the export competitiveness of Japanese products in the short term, it is necessary to pay attention to the impact of exchange rate fluctuations on import costs and the overall impact on the economy in the long run.

As the global economic structure changes, Japanese enterprises also need to adjust their global strategies, especially to invest more and innovate in key technologies and industrial chain restructuring.This will not only help enterprises grasp new opportunities in the global market, but will also provide momentum for Japan’s continued growth.