Japan-China trade: explaining the double deficit

According to Ministry of Finance, Japan runs a trade deficit with China. However, when one looks at the trade data from a Chinese standpoint, it appears that China is also running a trade deficit with Japan. Some inconsistency in international trade data is inevitable, but each country having a deficit with the other is clearly impossible. So what’s going on?

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.