china-q2-gdp-slows-to-4-3-percent-pressure-spreads-to-japan-export-chain
# China GDP# Japan exports# machine tools
Key Points
- China's April-June GDP grew 4.3%, with deceleration now pronounced
- Weak domestic demand and the property adjustment keep dragging
- Japan's machine tool, electronics and chemicals exports face order pressure
- Combined with the travel advisory, goods and services channels are squeezed at once
Analysis
The biggest external variable for Japan's export chain is flashing yellow again: China's Q2 GDP grew just 4.3%, with deceleration pronounced as weak demand and the property slump drag on. Transmission to Japan runs on two tracks — machine tools, chip equipment, electronic components and chemicals tied to Chinese capex on the goods side; and on the services side, a halved Chinese visitor count now compounded by shrinking outbound spending power. Watch China's July PMI, property sales, and China-bound orders in Japan's machine-tool statistics.