Foreign Commerce and Shipping of Empire of Japan - Trade

Trade

Despite popular perception, during the 1930s Japan was exporting low-cost items successfully. However, between the years of 1929 and 1938 foreign commerce dropped from 3.7% to 3.5%. Japan ran a trade deficit, selling a total of US$12.85 and buying US$15.25 per capita. This was in part brought on by the purchase of wartime materials.

Japan's primary trading partners in order were:

• United States
• Manchukuo
• Wang Jingwei Government
• Mengchiang
• Chinese occupied lands
• India
• United Kingdom
• Dutch Indies

Japan exported 32% of its total output to the United States, and purchased 21% of its foreign trade.

Japan's imports were as follows:

• 32% - cotton
• 9% - wool
• 9% - iron
• 6% - petroleum
• 4% - machinery
• 3% - soybeans
• 2% - wheat

Japan's exports were as follows:

• 19% - wool articles
• 15% - silk
• 15% - rayon
• 3% - machinery

Japan's primary exports were silk, controlling 80% of the world's production, and tea, controlling 10%.

Japan's total foreign trade was equivalent to Belgium, a country with less than 10% of Japan's population.

In 1897, the local monetary unit, the yen, was valued on the gold standard at a base level of 24.5 British Pence, which permits the use in the figures of the pound sterling or gold-backed US dollars.

(1 Yen = 24.5 British Penny or 10.8 Yen = 1 British Guinea = 1.05 Pounds Sterling)

During the worldwide depression (1931 to 1934), Japanese exterior commerce grew. The expansion of this trade was in part due to European difficulties in supplying their colonies, allowing Japan to expand into new markets. Before the war, crude silk represented one-third of exports and 10% of processed silk. Other products for export were rayon, cotton, processed silk and others. In 1937 exports were crude silk, cotton fabrics, and rayon. Japan was importing raw cotton, wool, and oil imported products.