Japan External Trade Organization (JETRO)
(1) An examination of Japan's exports to East Asia in 1997 by region shows that exports to the Asian NIEs fell by 0.2% on the previous year, exports to the ASEAN4 fell by 5.9% due to a substantial decline in exports of transport equipment (including automobile parts), and exports to China fell 0.5% due to a slump in demand for non-electric machinery. Looked at by category of goods, exports of electrical equipment (the largest export category) grew 0.1% on the previous year, whereas exports of non-electric machinery slumped sharply by 8.1% (Tables 14, 19-1).
(2) An examination of Japan's imports from East Asia in 1997 by region shows that although imports from the Asian NIEs shrank 13.7% and imports from the ASEAN4 fell 2.5% year on year, imports from China continued on their upward trend, growing by 3.7% on the previous year. In the second half of 1997, both imports from the ASEAN4 and China went into decline. Considered by category of goods, machinery and equipment-the largest category, accounting for 31.0% of imports-grew a slight 0.3%, but there were substantial declines in imports of textiles (down 11.0%) and mineral fuels (down 7.8%). Of machinery and equipment, office equipment and audiovisual apparatus slumped heavily in the second half of the year. The percentage fall in imports from East Asia in the first half of 1998 (17.7%) is approximately the same as the percentage fall in imports as a whole (17.1%) (Tables 16, 19-2).
(3) Japan's trade with the ASEAN4 in 1996, prior to the crisis, saw exports decline year on year by 4.4% while imports grew by 9.0%. The surplus shrank by US$5.8 billion compared with the previous year. Of particular note is the fact that the percentage growth in Japan's imports from the ASEAN4 exceeded the 4.8% growth posted by the U.S. in the same year. Following the crisis, Japan's imports from the ASEAN4 went into decline, and the Japanese economy acted less as an "absorber" than the U.S. However, in the January~March period in 1998, the U.S. trade deficit with the ASEAN4 grew by US$1.2 billion, while Japan's balance of trade with the ASEAN4 shifted from a US$1.1 billion surplus in January~March 1997 to a US$0.7 billion deficit, making a US$1.8 billion contribution towards improving the balance of trade of the ASEAN4.
(4) A JETRO questionnaire survey of member firms in the manufacturing sector conducted in May 1998 found that of the 356 firms surveyed with manufacturing operations in East Asia, 239 firms (approximately two-thirds) had been affected by the crisis in Asia. More specifically, in addition to firms which were adversely affected by falling sales due to declining local demand, increases in the cost of procurement of imported parts and increases in the cost of raising funds, some firms also benefited, such as the 12.8% of firms which saw exports rise due to a fall in prices (Table 20). Hence while many firms were forced to cut operating ratios or restructure themselves, there were also those that responded positively by, for example, shifting from local sales to exports, raising operating ratios and increasing local procurement of parts (Table 21). According to the results of another survey, 74.4% of firms indicated that they will maintain or increase current levels of imports of products from subsidiaries in Asia.