Japan's H1 FY2025 trade: China imports of PCs, telecom gear rise

Overview

On October 22, 2025, Japan's Ministry of Finance released preliminary trade statistics for the first half of fiscal 2025 (April–September). Japan's total exports were 53.6533 trillion yen, up 0.2% year on year, while imports fell 3.2% to 54.8771 trillion yen, leaving a deficit of 1.2238 trillion yen. With China, exports came to 9.2622 trillion yen (down 2.1%) and imports to 12.8919 trillion yen (up 2.9%), so Japan's trade deficit with China widened by 18.3% to 3.6297 trillion yen.

Background

China is one of Japan's largest trading partners, and its weight is especially pronounced on the import side. In this release, imports from China were roughly twice the value of imports from the United States (6.3893 trillion yen). On the export side, shipments to the United States fell sharply, by 10.2% to 9.7115 trillion yen, narrowing the gap with exports to China (9.2622 trillion yen). For Asia as a whole, including China, exports rose 3.1% to 29.3920 trillion yen, the fourth consecutive half-year increase, with growth in items such as semiconductors and other electronic components. One notable feature of this release is that exports to China turned downward even as exports to Asia overall continued to grow.

The average exchange rate for the period (the customs-published rate) was 146.1 yen to the dollar, a 4.6% appreciation of the yen from 153.15 yen a year earlier. Exchange rates and changes in the international trade environment appear to have influenced trends across product categories.

Key Points

Item	Value	Year on year
Exports to China	9.2622 trillion yen	-2.1% (first decline in four half-year periods)
Imports from China	12.8919 trillion yen	+2.9% (third consecutive increase)
Balance with China	-3.6297 trillion yen	Deficit up 18.3%
Total exports	53.6533 trillion yen	+0.2%
Total imports	54.8771 trillion yen	-3.2%

• Exports to China that increased: raw materials, up 29.6%.
• Exports to China that decreased: semiconductor manufacturing equipment, down 10.2%; non-ferrous metals, down 19.4%; and motor vehicles, down 9.0%.
• Imports from China that increased: computers and peripherals, up 18.3%; communication equipment, up 8.9%; and audio-visual equipment including parts, up 5.9%.
• Volumes and prices: According to the trade indices, export volumes to China fell 4.8% while prices rose 2.8%. Import volumes from China rose 8.3%, while prices fell 5.0%.

What It Means for Japan–Shenzhen Exchange

Computers, communication equipment and audio-visual equipment, the import categories that grew most visibly, are fields in which Shenzhen and the surrounding Pearl River Delta serve as global production and supply hubs. The statistics are compiled by country and do not show a regional breakdown, but the results appear to reflect the strong links between Shenzhen's electronics industry and the Japanese market. Rising import volumes combined with falling prices also suggest that Chinese-made electronics remain a familiar source of supply for Japanese consumers and businesses.

On the export side, shipments of semiconductor manufacturing equipment and motor vehicles from Japan declined. For Japanese manufacturers and supply chains in South China, including Shenzhen, assessing trends in capital investment and demand is likely to be a key challenge. The increase in exports of raw materials is also drawing attention. Taken together, the figures illustrate how closely the two economies remain intertwined through supply chains, even as the composition of trade shifts.

Outlook

These are preliminary figures and may be revised when final data are released. How changes in the trade environment and exchange rates will affect Japan–China trade in the second half of the fiscal year cannot yet be foreseen. Detailed trends by product will need to be confirmed in the monthly statistics to be published going forward.

From the Association

The Association is interested in how Japan–China trade trends affect business activities in Shenzhen and Japan, and continues to monitor the relevant statistics. We will keep working to provide information that is useful for our members' businesses.