China's economic growth could fuel Japan's recovery
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China's fast economic growth has a direct stimulating impact on Japan's economic recovery, and Japan's economic dependence on China has been continuously on the rise, said the Chinese Academy of Social Sciences (CASS) in its recent research.
According to the blue book on Japanese economy, overseas demand has been and will remain one of the strongest drivers of Japan's economic recovery. China is the country's biggest trading partner and the largest export destination for its goods.
China has kept a trade deficit with Japan since 2002. However, analysts believe that may change during the coming months, because Japan is likely to need more Chinese goods to support its post-earthquake reconstruction.
CASS sees Japan's economy to grow at a rate of between 1 and 2 percent this year, down significantly from its 20-year record high GDP growth of 3.9 percent in 2010.
Talks on establishing a free- trade zone between China, Japan and South Korea may start next year, said Chinese Premier Wen Jiabao during his two-day working trip to Japan and South Korea on May 21 and 22.
Japan's recent 9.0-magnitude earthquake, which led to a tsunami and a nuclear crisis, has had a limited influence on its trade ties with China and the rest of the world, said CASS.
During 2002 and 2010, China had an accumulated trade deficit of US$236.23 billion with Japan. In 2010, the figure rose to US$55.6 billion, according to CASS.
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