Japan exports to China plunges 12pc, but China-to-Japan trade up 4pc

JAPAN's year-on-year exports to China fell 12 per cent to US$12 billion in October as it posted its largest ever trade deficit with Asia's biggest economy, Financial Times reported.

Shipments of cars and machines lead trade declines, as a result of a territorial dispute in the East China Sea that lead to boycotts. But Chinese shipments to Japan have boomed as Japan imported mainland-assembled iPhone 5, with imports from China growing four per cent to $216.5 billion year on year.

Citibank estimates tensions over the East China Sea islands have led to a six per cent drop in exports by volume in October. But Toyota said its sales have already recovered to near pre-dispute levels and it expects a full rebound in sales soon.