The effects of China's slowdown have rippled through the global economy. But for the region's next-largest economy, Japan, the blow has so far at least been cushioned by its own recovery in domestic demand, and a new boost to exports from the sharply weaker yen, which makes Japan-made goods more competitive on global markets.
Sales of many Japanese products in China were also curtailed sharply last year by a boycott over a territorial dispute, so Japanese shipments are rebounding from that low base to a more natural market share, even as overall demand in China may be softening. And Japanese companies have been gearing up to tap into China's growing consumer market, which is expected to grow in a recalibration of the Chinese economy, even as other sectors decline.For May, the most recent data available, Japan's exports to China rose a healthy 8.3% over the previous year, showing a sharp recovery from recent softness - though not quite as robust as Japan's 10.1% increase in exports overall. That, despite the fact that China reported Monday that its GDP growth slowed to 7.5% in the second quarter, down from 7.7% in the first quarter.
