The Impact of the Diaoyu Island Incident on Sino Japanese Plastic Trade

        With the beginning of the "Battle for Diaoyu Islands" between China and Japan, various movements on both sides have received high attention. The Diaoyu Island incident has been escalating, and the trade in China Japan's plastic industry is increasingly intensifying. The following is a summary and comment made by a domestic media on whether China will counter Japan from aspects such as the plastic machine industry and foreign trade.

        China's Injection Molding Machine Industry Becomes Stronger and Stronger; Japan's Plastic Machine Export Declines
Plastic machinery has a wide range of applications, including: packaging, agriculture, construction, automotive and other fields. Due to its lightweight, recyclable, low-temperature formability, and versatility, plastics have become increasingly widely used and used in increasing amounts. The development trend of replacing steel with plastics is also springing up like bamboo shoots after a spring rain. The development potential of China's plastic machine industry is great, and there is ample potential. Especially some models with high technological content, good performance, and relatively moderate prices, such as ultra-large, precision, dedicated injection molding machines, low temperature, high-power single screw extruders, multi-layer coextrusion blow molding machines used to produce high permeability and heat resistance packaging materials, and production of industrial parts (automotive parts, etc.) blow molding machines, all have good development prospects.

        Nowadays, there have been significant changes in the demand and consumption of plastics, but plastic machinery is still the top concern for major manufacturers and consumers. Although China's plastic machinery market lags behind Europe, North America, and other places, more than ten enterprises have begun to develop and produce fully electric injection molding machines, including leading plastic machinery enterprises such as Haitian Group, Bochuang Machinery, Yizhimi Machinery, and AGCO Machinery.

        With the continuous rise of domestic plastic machinery enterprises, more efficient and energy-saving plastic machinery has also emerged. In addition to strong foreign competitors, the strength of these domestic plastic machinery enterprises has also begun to be underestimated. Make China one of the powerful competitors in the Japanese plastic machine industry.

        According to data released by an industry trade association, sales in Japan's plastic machinery industry plummeted by 50% in 2009. With the continuous spread of the European debt crisis, the economic crisis has had a huge impact on Japan's plastic machinery industry, and sales of extruders and blow molding machines have also declined, but the recession has not exceeded that of the injection molding machine industry. However, some companies and industry observers believe that the development trend of the plastic machine industry has slightly improved in recent months, with the Chinese market being particularly prominent. However, the overall strength of the recovery is not yet clear.

        The proportion of trade volume between China and Japan is 20.6%

        With the so-called "purchase of islands" by the Japanese government, the Diaoyu Islands issue is gradually worsening, and whether the two sides will fight a economic warfare has become the focus of attention. Economic countermeasures can also be regarded as a good means of countering Japan.

        Sino Japanese trade has a considerable impact on Japan's economy. The Nihon Keizai Shimbun reported that according to the statistics released by the Japan Trade Promotion Agency, the trade volume between China and Japan in 2011 reached 344.9 billion dollars, and Japan's imports to China reached 183.4 billion dollars. Japan's exports to China amounted to US $161.4 billion, with China Japan's trade volume accounting for 20.6% of Japan's total trade volume.

        According to statistics, Japan had 2487 non manufacturing enterprises in Chinese Mainland in 2011, accounting for 24.4% of Japan's 10187 overseas non manufacturing enterprises.

        According to a trade report issued by the Japan Trade Promotion Agency, in the first half of this year, Japan's trade deficit with China increased 2.6 times compared to the same period last year, reaching 1.401 trillion yen, and its total exports to China decreased 5.7% year-on-year. The main reason for the expansion of the trade deficit is that exports of steel and machinery products to China have decreased for the first time since 2009.

        Zhao Zhongxiu, Dean of the School of International Trade at the University of International Business and Economics, stated that in the face of severe trade growth in China, a decrease in demand for Japanese products is also expected.

        Sun Li, an economist, insisted that if the Chinese market for Japanese manufacturing shrank, it would be a big blow to
Japan. Sun Lijian believes that there may be two situations in the future: one is that in the short term, Japan's new exports will decline, and dealers with inventory of Japanese goods will clear their positions; Another situation is that Japan's manufacturing position has been replaced by countries such as South Korea.

        Conclusion: With the continuous escalation of the Diaoyu Islands incident, experts believe that the outbreak of the Diaoyu Islands incident has a devastating impact on both China and Japan's economic development, but China's affordability is much higher than that of Japan. The Japanese economy has obvious weaknesses. Once China initiates economic sanctions, it may trigger a Japanese economic crisis. At that time, Japan will pay a huge price for this, and it is not only Japanese plastic machinery and Japanese foreign trade that may sink. By then, perhaps the Diaoyu Island incident will really become a grave for Japan. www.jiashengsz.com