Japan's struggles as exports to China fall

Japan’s year-on-year exports to China fell 12% to US$12 billion in October as it recorded its largest ever trade deficit with Asia’s biggest economy, Financial Times reported. Shipments of cars and machines lead trade declines, as a result of a territorial dispute in the East China Sea that lead to boycotts. Chinese shipments to Japan, however, have boomed as Japan imported mainland-assembled iPhone 5, with imports from China growing 4% to US$216.5 billion year-on-year. Citi estimate the tensions over the East China Sea islands, which are claimed by both nations, to have led to a 6% drop in exports by volume in October. Seperately, Toyota Motor said its sales have already recovered to near pre-dispute levels and it expects a full rebound in sales soon.