Are tensions with China hurting exports?

Japan’s share of Chinese imports has fallen below that of the EU and South Korea recently. One reason is that large numbers of Japanese firms have shifted production facilities to China. This shouldn’t in itself be too great a concern. But the recent tensions with China still seem to be harming exports too. China and South Korea intend to conclude a bilateral trade agreement by year-end, while talks involving Japan seem to have ground to a standstill. Japan may therefore continue to lose import market share in the world’s second-largest economy.