Recent monetary easing moves by Japan have stirred concern among experts in China that a weakening Japanese yen could soon leave its mark on Chinese trade.
Such anxieties may be somewhat overblown. China has widened trade with other countries over the last several years, so Japan's importance as an importer of Chinese goods has diminished. Thus, the falling value of the yen may not cut too much off China's trade portfolio.
What's more, Japan's looser monetary stance is expected to rejuvenate the country's economy and promote fiscal expansion; and the achievement of these ends will only push up the country's consumption and increase its demand for imports from China and elsewhere.
Also, a depreciated yen will make it less expensive to import the high-technology Japanese equipment and machinery that China needs to widen its value-added output.
The author is Peng Wensheng, chief economist from China International Capital Corp.
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