SamuraiBlue
Captain
Some people really loves sound bites don't they.
As I said Japan had not seen any of the above which would define a recession.
As I said Japan had not seen any of the above which would define a recession.
Chinese Economics Thread
- Thread starter Norfolk
- Start date
shen
Senior Member
There is your recession. Q2 and Q3 2014. two consecutive quarterly negative GDP growth. the reason if I remember correct was Abe raising sales tax?
broadsword
Brigadier
This is the big picture of trade between China and Japan. It is from Research Institute of Economy, Trade and Industry from Japan itself. The accompanying chart shows the trend.
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Japan Is Missing the "China Express" While China Is Distancing Itself from Japan
Despite the frigid political relationship between Japan and China, Japan's trade with China continues to be brisk. According to the Ministry of Finance's preliminary trade statistics for 2004, Japan's trade with China and Hong Kong accounted for 20.1% of the country's total trade, exceeding the U.S. share (18.6%) for the first time. This shift toward China is expected to continue, and China, even excluding Hong Kong, may soon surpass the U.S. to become Japan's largest trading partner.
However, while the bilateral trade relationship may seem warm when viewed from the Japanese side, it is only lukewarm from China's perspective. In 2004, growth in China's trade with Japan (25.7%) was significantly lower than that for the world as a whole (35.7%). By contrast, trade with the European Union rose 33.6%, trade with the U.S. increased 34.3%, and trade with South Korea jumped 42.5%. What is more, this is not a recent trend; Japan's share of China's total trade has been falling since the latter half of the 1990s. Japan had been China's largest trading partner, but in 2004 it fell to third place behind the EU and the U.S.
Thus, while Japanese statistics clearly show that the Japanese economy is shifting toward China, Chinese statistics indicate that its economy is distancing itself from Japan. This asymmetry mainly reflects the rapid strides made by the Chinese economy compared with Japan's own sluggish economic growth. Countries the around the world are increasing their trade with China as they take advantage of business opportunities that utilize the country, both as a production base as well as a market for finished products. Although from Japan's perspective trade with China is logging higher growth than that with the rest of the world, from China's viewpoint Japan's position has declined relatively since the growth of Sino-Japanese trade has fallen short of the pace at which China's trade is expanding overall. In fact, Japan's importance as a trading partner has waned not only for China but also for most countries against the backdrop of its protracted post-bubble recession.
The fact that economic ties between Japan and China are already cooling becomes even clearer when we look at the changes in the bilateral "trade intensity," which excludes the share the trading partner has in global trade scale factor from "trade dependency." Trade intensity, as used here, is defined as follows:
If we calculate China's trade intensity with Japan and Japan's trade intensity with China based on the above equation, we can see that in both cases the figure has been falling since the latter half of the 1990s (). This signifies that China's trade dependency on Japan is falling at a pace faster than the shrinking of Japan's share in global trade; on the other hand, although Japan's trade dependency on China is increasing, it falls short of the pace at which China's share of global trade is increasing (). Thus, recent changes in the bilateral trade intensity clearly show that not only is the Chinese economy distancing itself from Japan, but Japan is also failing to catch the "China Express" as it runs at full tilt, suggesting that the cool political relations between the two countries might have already harmed their economic relations.
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Japan Is Missing the "China Express" While China Is Distancing Itself from Japan
inShare
China is rapidly emerging as a trade superpower, with the total amount of imports and exports reaching $1.15 trillion in 2004. In fact, China has surpassed Japan in terms of both imports and exports to become the third-largest trading nation in the world after the United States and Germany. While Japan's dependence on trade with China is surging against the backdrop of China's remarkable economic development, its relative importance, from China's viewpoint, is declining, along with its presence in the global economy ().Despite the frigid political relationship between Japan and China, Japan's trade with China continues to be brisk. According to the Ministry of Finance's preliminary trade statistics for 2004, Japan's trade with China and Hong Kong accounted for 20.1% of the country's total trade, exceeding the U.S. share (18.6%) for the first time. This shift toward China is expected to continue, and China, even excluding Hong Kong, may soon surpass the U.S. to become Japan's largest trading partner.
However, while the bilateral trade relationship may seem warm when viewed from the Japanese side, it is only lukewarm from China's perspective. In 2004, growth in China's trade with Japan (25.7%) was significantly lower than that for the world as a whole (35.7%). By contrast, trade with the European Union rose 33.6%, trade with the U.S. increased 34.3%, and trade with South Korea jumped 42.5%. What is more, this is not a recent trend; Japan's share of China's total trade has been falling since the latter half of the 1990s. Japan had been China's largest trading partner, but in 2004 it fell to third place behind the EU and the U.S.
Thus, while Japanese statistics clearly show that the Japanese economy is shifting toward China, Chinese statistics indicate that its economy is distancing itself from Japan. This asymmetry mainly reflects the rapid strides made by the Chinese economy compared with Japan's own sluggish economic growth. Countries the around the world are increasing their trade with China as they take advantage of business opportunities that utilize the country, both as a production base as well as a market for finished products. Although from Japan's perspective trade with China is logging higher growth than that with the rest of the world, from China's viewpoint Japan's position has declined relatively since the growth of Sino-Japanese trade has fallen short of the pace at which China's trade is expanding overall. In fact, Japan's importance as a trading partner has waned not only for China but also for most countries against the backdrop of its protracted post-bubble recession.
The fact that economic ties between Japan and China are already cooling becomes even clearer when we look at the changes in the bilateral "trade intensity," which excludes the share the trading partner has in global trade scale factor from "trade dependency." Trade intensity, as used here, is defined as follows:
Diagram: Contrasting changes in the bilateral trade dependency of Japan and China
(Source) Based on the Ministry of Finance's "Trade Statistics" and Chinese Customs Statistics.
Table: Decomposition of bilateral trade dependency
(Note) Some figures are estimates.
(Source) Based on the Ministry of Finance's "Trade Statistics," Chinese Customs Statistics and the WTO's "International Trade Statistics."
February 18, 2005
(Source) Based on the Ministry of Finance's "Trade Statistics," Chinese Customs Statistics and the WTO's "International Trade Statistics."
(post from ejinsight)
HK encourages MNCs to set up corporate treasury centers
Hong Kong has unveiled some incentives to encourage multinational and mainland enterprises to establish (CTCs) in the city.
John Tsang said in his budget speech Wednesday that the government will amend the Inland Revenue Ordinance to allow, under specified conditions, interest deductions under profits tax for CTCs.
Also, the profits tax for specified treasury activities will be reduced by 50 percent, he said.
The tax incentives are aimed at prodding to establish CTCs within their regional headquarters in the city.
A CTC effectively functions as an in-house bank within a multinational corporation, focusing on the optimal procurement and usage of capital for the operations of the group.
Improving the operational efficiency, securing the best external and internal funding, and lowering the costs by standardizing multi-currency transactions and payment systems are some of the things that CTCs can ensure as they perform treasury services for .
(HKMA), the city’s de facto central bank, welcomed the government’s announcement, saying the new rules on CTCs will help Hong Kong consolidate its position as a .
“Relaxation of the interest deduction rules for qualifying CTC activities and a concessionary half-rate regime for qualifying CTCs will enhance ,” a HKMA spokesperson said.
“The development of Hong Kong as a regional CTC hub would benefit the financial and , and help deepen our capital , including the offshore RMB market,” the spokesperson added.
HK encourages MNCs to set up corporate treasury centers
Hong Kong has unveiled some incentives to encourage multinational and mainland enterprises to establish (CTCs) in the city.
John Tsang said in his budget speech Wednesday that the government will amend the Inland Revenue Ordinance to allow, under specified conditions, interest deductions under profits tax for CTCs.
Also, the profits tax for specified treasury activities will be reduced by 50 percent, he said.
The tax incentives are aimed at prodding to establish CTCs within their regional headquarters in the city.
A CTC effectively functions as an in-house bank within a multinational corporation, focusing on the optimal procurement and usage of capital for the operations of the group.
Improving the operational efficiency, securing the best external and internal funding, and lowering the costs by standardizing multi-currency transactions and payment systems are some of the things that CTCs can ensure as they perform treasury services for .
(HKMA), the city’s de facto central bank, welcomed the government’s announcement, saying the new rules on CTCs will help Hong Kong consolidate its position as a .
“Relaxation of the interest deduction rules for qualifying CTC activities and a concessionary half-rate regime for qualifying CTCs will enhance ,” a HKMA spokesperson said.
“The development of Hong Kong as a regional CTC hub would benefit the financial and , and help deepen our capital , including the offshore RMB market,” the spokesperson added.
Blackstone
Brigadier
Good move by HK to stay relevant in the face of Shanghai and Shenzhen's push to be financial hubs.
Blackstone
Brigadier
Blackstone
Brigadier
But that report's from 2005, and a lot has changed. In any case, it's bad (on balance) if Japan isn't fully benefiting from China's "One Road, One Belt," programs because it means it has less to loose economically, which in turn leave the door ajar for various nationalistic factions to further damage Sino-Japanese relations.
Those overhead wires for trolleys and trams over roads used by other vehicles are decidedly troublesome, so using antennae inside well built roads would be an improvement but electric buses and trams will stay. Indeed in many cities where trams were deleted many years ago they are now coming back even before the overhead wires are replaced.
I heard it say that China has filled its stategic oil reserves to capacity and that a main part of the decrease in imports is the lowering of crude oil imports.
broadsword
Brigadier
What change? Size of both economies? Or bilateral relations?