Japan vs China Essay

1001 Words Dec 19th, 2012 5 Pages
Trade between China and Japan is worth about $345bn (£212bn). That alone, stands as a significant portion of trade, investment, and revenue. Short-term revenue, for example would be a one-time exchange of trade whereas long-term revenue would be long-term trade obligations between two business or parties. The full terms of the obligation are usually carried out over more than one year.
Some industries are heavily dependent upon long-term revenue for sustained profits and to pay for basic operating costs. Long-term revenue, however, is not simple to define because it can mean different things in different industries.
Let's take a look at how Japan's economy and
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Honda’s sales, meanwhile, dropped by 40.5% from a month earlier to 33,091 units. Overall, according to the China Association of Automobile Manufacturers, sales of Japanese brand vehicles sank 29% in September from a year earlier. The slowdown in trade with China, Japan’s biggest trading partner, clearly is taking its toll. In 2011, two-way trade between China and Japan totaled more than US$340 billion. China is both Japan’s biggest export destination, buying about 18% of the goods it ships overseas, and also the biggest source of its imports. But Japan is only China’s fourth-largest trading partner, after the E.U., U.S. and ASEAN. In comparison, Japan has much more to lose than China does if they both halt trade and investment with each other; Japan's long-term revenue will take a massive hit.
One example would be Toyota. It has been hit hard by the Sino-Japanese island dispute and the company estimates the loss in sales to be around 200,000 cars. The sales of the company, and of its two joint ventures with China, have almost halved in September and October due to the protests. TM expects the impact of sales losses on its full-year net profits to be almost 30 billion Yen ($373 million). Other examples include Nissan Motors shares dropped 5% in Tokyo, Uniqlo-owner Fast Retailing fell 7% and Honda Motors was down by 2.5%.

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