Nikkei: Japan's supply chain is weak and it is highly dependent on Chinese mobile phones and laptops

Source: Nikkei Asia Review

According to a report released by the Japanese government a few days ago, China's share of Imports in Japan is higher than that of other major economies, which exacerbates the risk of supply chain disruption in Japan.

According to the Nikkei Asian Review, the latest edition of the World Economic Trends report by the Cabinet Office of Japan examines commodity trade between Japan, the United States and Germany with China. The data shows that in 2019, 23.3% of Japan's imports came from China, while the proportion in the United States and Germany was 18.1% and 8.5%, respectively.

This trend also extends to the range of goods that Japan is particularly dependent on Chinese sources. Of the approximately 5,000 items inspected, China accounted for at least half of total imports, with Japan at 1,133, the United States 590 and Germany at 250.

It is understood that from light-emitting diodes to toys, Japan's dependence on Chinese imports is widespread, but it is especially evident on devices such as smartphones and laptops. Japan's share of mobile phone imports from China rose from 69.1% 10 years ago to 85.7% in 2019, and almost all of Japan's imports of tablets and laptops come from China (98.8%).

The report notes that the above data provides further fodder for recent economic security in Tokyo, Washington and elsewhere, as the COVID-19 pandemic has proven the devastation of supply chain problems.

The Cabinet Office warned that if China's exports are interrupted by supply shocks or shipping delays, it will be difficult for Japan to buy many products from other sources, and the economic impact will be enormous.

The report also shows that the sources of imports in the other two major economies are unevenly distributed. Many of the U.S. products rely on neighboring Canada and Mexico, while EU member Germany sources products from across the EU.

(Proofreading/Yuki)