Asian exporters' reliance on Japan fades

Asian exporters' reliance on Japan fades

TOKYO (AFP): While Japanese exporters grow increasingly
dependent on Asian markets, exporters in Asia are relying less on
Japan as they sell more merchandise to each other, according to a
finance ministry survey.

The survey, covering trade in the context of international
financial flows, found the Association of Southeast Asian Nations
(ASEAN) had particularly reduced dependency on the Japanese
market. ASEAN groups Brunei, Indonesia, Malaysia, the
Philippines, Singapore and Thailand.

At the same time, ASEAN exporters are relying more on markets
in the newly-industrialized economies (NIEs) of South Korea,
Taiwan, Hong Kong and Singapore (which is included in both
groups).

The NIEs are also reducing their dependence on the Japanese
market, largely in favor of the booming Chinese market which has
been sucking in a growing share of NIE exports in recent years.

In 1980, Japan accounted for 22.9 percent of the combined
exports of Brunei, China, Hong Kong, Indonesia, Malaysia, the
Philippines, Singapore, South Korea, Taiwan and Thailand, the
survey showed. By 1992, Japan's share had fallen to 13 percent
and is estimated to have dropped further to 12.5 percent last
year.

For ASEAN countries alone, the Japanese share of total exports
plunged from 29.6 percent in 1980 to 17 percent in 1992. During
the same period, Japan's share of NIE exports dropped from 9.7
percent to 8.5 percent.

The survey showed the ASEAN countries have grown more
dependent on the NIE markets which accounted for 20 percent of
their exports in 1992, up from 13.2 percent in 1980. Intra-ASEAN
trade has also increased, with ASEAN countries absorbing 18.4
percent of the group's exports, up from 16.7 percent.

China is also increasing its importance as a destination for
ASEAN exports, with its share growing from only one percent in
1980, when Indonesia, the biggest ASEAN economy, had no
diplomatic relations with China, to 2.9 percent.

The NIEs have meanwhile sharply increased their dependence on
the Chinese market which accounted for 16.5 percent of their
exports in 1992, up from 2.7 percent in 1980. Intra-NIE trade has
also expanded with 9.6 percent of all exports going to other
NIEs, up from seven percent.

But the four countries have grown less dependent on ASEAN
markets, which accounted for 10.8 percent of their exports in
1992, down from 13.3 percent.