In 2007, the three top sources of China’s trade
deficit are from Taiwan, South Korea and Japan with
78, 48, and 32 USD billion worth of value
respectively. Furthermore, there are amount of
deficit with the five countries has been growing the
over the period 2001-2007. China’s trade deficit
with Japan has the fastest growth rate- 6.4 times
surge from 2002 to 2007. China’s deficit is due to
the buying of large quantities of semi-finished
products from Taiwan, South Korea and Japan. In
addition, there is a rapid increase in direct
investments from these economies as they have
shifted their exports through investments to China
due to its tremendous potential. An increase in
imports from the above mentioned countries would
result in the increasing China’s trade deficit with
the above-mentioned countries, ceteris paribus.
Below is the chart of China top 10 sources (countries / regions) of
trade deficit for the year 2007:
Below is the chart of trend of China top 5 sources (countries / regions) of trade deficit from year 2001 - 2007:
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