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| Capital city: |
Tokyo |
| Surface area: |
387,000 sq km |
| Population: |
127.8 million |
| Official language(s): |
Japanese |
| Head of State: |
H.M. Emperor Akihito |
| Head of Government: |
Prime Minister HE Mr Yasuo Fukuda |
| Australian exports to Japan: |
A$31,839 million |
| Australian imports from Japan: |
A$18,042 million |
| Japan's principal export destinations: |
USA, China, Republic of Korea |
| Japan's principal import sources: |
China, USA, Saudi Arabia | (Source: Department of Foreign Affairs and Trade - Country economic fact sheet)
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The Japanese Government has spent several hundred trillion yen on economic stimulus packages in an effort to spur a recovery. However, the success of these packages is still in doubt as stagnation continues and Japan’s banks continue to hold large non-performing loans.
Changes that are evidence of the ‘new economy’ emerging in Japanese business practices include:
- High interest in IT-based solutions
- Demand for innovative cost effective business solutions which can include imported product and services
- Breakdown of traditional interlinked (keiretsu) business relationships
- Introduction of business-to-business (B2B) and business-to-consumer (B2C) e-commerce ventures
- Speeding up of the business decision making processes
- Introduction of Western management practices
The prolonged economic slow-down, which began a decade ago, is causing fundamental changes in Japanese business practice, which will ultimately have a positive impact on demand for Australian goods and services. These changes are evidence of a ‘new economy’ emerging in Japan where companies are being forced by market pressures, including government deregulation measures, to change traditional business practices. Despite economic growth stagnation, the sheer tremendous size of the Japan economy and its regional markets will always present opportunity for Australia.
Key economic indicators and statistics for 2007:
- GDP – US$4,383.8 billion
- GPD per capita – US$34,312
- Real GDP growth – 2.1 per cent
- Inflation – zero per cent
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |
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Although the Japanese Government has little direct involvement in the operation of the private sector, through its ministerial bureaucracies it maintains tight supervision of firms via regulation and mandatory administrative guidance. It manages industrial policy by directing various sectors into suggested areas of enterprise and facilitating their entry by providing seed money and research, technical and regulatory support.
Under the revised post-war Constitution of 1947, Japan adopted a Westminster form of government. The Diet (Parliament) consists of a popularly elected House of Representatives (Lower House 500 seats) and a House of Councillors (Upper House 252 seats).
There are three tiers of government – National, Prefectural (State) and Local. The key political parties are the:
- Liberal Democratic Party
- New Komeito
- New Conservative Party
- Democratic Party of Japan
- Social Democratic Party of Japan
- Japanese Communist Party
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Trade relations and statistics
As a world economic power, second only to the USA, Japan remains an important and influential player in global and regional affairs. Japan’s foreign policy is administered by the Ministry of Foreign Affairs.
Japan is an active member of the Asia Pacific Economic Cooperation (APEC) and the United Nations.
As the largest creditor nation in the world, Japan supplies Overseas Development Assistance (ODA) to many developing countries and actively participates in humanitarian programs worldwide.
The Japanese corporate trade network, particularly throughout Asia, is extensive and these connections potentially hold great opportunitities for Australian exporters particularly linked to Japan’s ODA program.
Japan has traditionally been seen as a closed or difficult market to enter for foreign companies, and during the 1980s it was under considerable pressure (from the USA particularly), to open up its markets to foreign competition.
Acceptance of foreign imports is increasing as Japanese consumers demand greater variety and value for money.
At times, Japan’s bi-lateral relationships with several Asian nations have been strained for historical reasons. However, as the economies of many Asian countries are closely linked to their growing trade with Japan, concerted efforts by each government are assisting in building strong relationships for the new century in the Asian region.
Australia and Japan enjoy excellent relations built on more than 100 years of bi-lateral trade and exchange.
Japan signed a bilateral trade agreement - a Free Trade Agreement (FTA) with Singapore in October 2000.
Over the past decade, opportunities for Australian exports to Japan are heading increasingly through the massive regional markets of the Japanese economic - including the Kansai (Osaka area), as far north as Hokkaido, and the southern island of Kyushu.
Australia is one of only a handful of countries in the world that enjoys a trade surplus with Japan.
Commodities dominate Australia’s exports to Japan but the mix is becoming increasingly diversified with processed foods and beverages, ICT-related products and services and other manufactures increasing.
Major Australian exports to Japan (2007):
- Coal – A$9,000 million
- Iron ore – A$4,501 million
- Bovine meat – A$1,908 million
- Aluminium – A$1,900 million
Major Australian imports from Japan (2007):
- Passenger motor vehicles – A$6,264 million
- Transport vehicles – A$1,532 million
- Civil engineering equipment – A$748 million
- Non-monetary gold – A$748 million
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet) |
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