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Economy, strong yen defuse 'explosive' Chinese shopping in Japan

29 Comments
By Kwiyeon Ha and Yiyuan Wang

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29 Comments
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“The quality of Chinese products meets our everyday needs,

Hence everyone who has money coming here and buying out everything in sight, from toilet seats, (dont understand why Chinese need them, as they typically don't "sit" on the seats) to paper products.

Oh right...."party line".

-8 ( +7 / -14 )

Now we may expect japan's trade data for January, meantime despite slow down in China, inflation was up 1.8% year-on-year in January, 2016

1 ( +4 / -3 )

Yubaru, what do you mean 'party line'? You realize that sometimes currency prices are outside of the govt's control? China is a massive economy, and reacting the the moves in the Yuan would make it so that JApan would have to peg the Yen to the Yuan to stay competitive. Japan can't do that, so we are at the mercy of China's central bank and others as well.

0 ( +2 / -2 )

Relying on Chinese money is always a false economy as Its too open to market forces/variables. So nothing really to get excited about or the put in strategic plan. Japanese should consider this as a bonus and look toward more controllable measures that have some control, such as policy to support small business growth, efficient taxation policy, encouraging major manufacturers to restore and infrastructure planing and other areas that help the economy on a bigger and long term front.

11 ( +13 / -2 )

It's the same the world over, currency markets are in free fall, but the Yen is considered a safe haven so it's rising as everyone else is falling.

My currency has dropped 20% against the yen since Christmas, and whilst it wont stop me coming to Japan - the 20% drop hits the spending money i have.

3 ( +3 / -0 )

The time has already came, I think. Actually this explosive Chinese shopping will be never continued because of stronger JPY, slower econimic situation and Chinese government strategy etc. Therefore we must think this kind of "Bakugai" is unexpected and unforeseeable issues. If more Chinese tourists don't come to Japan from now on, how they handle or keep their operation, business, hotel, cosmetic store, bus company etc... ??

1 ( +1 / -0 )

(dont understand why Chinese need them, as they typically don't "sit" on the seats) says Yuibaru....

The Chinese are following the Japanese in a demographic transition to an aging population, and apparently also in a toilet transition from squatting to sitting.

-1 ( +3 / -4 )

measures that have some control, such as policy to support small business growth, efficient taxation policy, encouraging major manufacturers to restore and infrastructure planing and other areas that help the economy on a bigger and long term front.

I was waiting for such measures for three years, but now it's election year and the ruling party, having dragged it's feet, thinks revising the constitution to recognise the role of the Self Defense Forces is a more pressing issue.

And what's more, there isn't an opposing political force pressing for a reassessment of such priorities.

The voters keep getting what they vote for.

4 ( +4 / -0 )

And the Yen just dropped below 112. Maybe if this trend continues, the Japanese can engage in a little of their own "bakugai" abroad during Golden Week.

2 ( +2 / -0 )

People wants a better economy in their everyday life and get SDF deployment overseas, weaponry market and constitution revision...go figure.

2 ( +3 / -1 )

stores served around 50% more international duty-free shoppers ... but each spent 15% less than a year ago

That's still a 28% increase in sales

6 ( +6 / -0 )

yubaru:

Hence everyone who has money coming here and buying out everything in sight, from toilet seats, (dont understand why Chinese need them, as they typically don't "sit" on the seats) to paper products.

This aversion to putting one's backside on the toilet seat only applies to public toilets. not toilets at home, which is why people are buying these seats and bidets. Would you waste money on buying one to put on a public toilet?

And the Japanese equally dislike sitting down on public ones, hence you still get so many squatting toilets.

Article:

“As a young person, I think travelling is for gaining experience and knowledge, not merely for shopping.”

True, but somehow once these bulk-buying tourists disappear, businesses are going to start worrying. You either welcome tourists with cash or be quiet. Talk about having your cake and eating it.

3 ( +4 / -1 )

This seems to be really the beginning of the end for the Abenomics, as chinese tourists; shopping was one of the last steady thing bringing growth... If this starts to fall as well....

3 ( +4 / -1 )

Two points to consider:

a) Goods bought at electronics shops typically don't need renewing every year, so that everyone who was in the market for, say, a toilet seat has already bought one which will be good to go for at least the next decade;

b) Japanese retailers have been taking the Mick and jackling up prices just to see how much consumers are willing to pay. Now they are blaming the yen and Japanese economy for their own avarice.

Cry me a river.

4 ( +5 / -1 )

ANTTHOM

Japan is not relying on Chinese money,its only a source of money among numerous sources.The problem is the strong Yen,and this what cant Japanese government help about,its mere big speculations happens in currencies generally,nor can do as China Yuan,because Yuan is not a hard currency like yen. Second,when world economy and stock markets and commodities are chilly,uncertain,and instable,its hard to find controllable measure that can be controlled as you suggest.Look around you will find all in the same boat more or less.Easy say than done.

-2 ( +2 / -4 )

antthom has got it right, retailers should by all means ride the boom, cater too it, HOWEVER a lot more work needs to be done wrt to the domestic aspects, but alas very little seems to be happening in that regard.........

So by all means cater to tourist business, BUT DONT depend on it or it will come back & bite you you know where.....

This high spend retail stuff shud be seen as a bonus as there is simply too much beyond retailers control, exchange rates, economies of tourist home countries(watch out if taxes on Chinese imports get slashed for example!!)

So enjoy the VERY GOOD shot in the arm but depend on it at your peril!!

2 ( +2 / -0 )

While Chinese people have been going on spending sprees in Tokyo, it sounds like it's been centered on consumer goods.

In London, Sydney, etc., hot Chinese money has been going into property. The effect of that slowing down may have a much bigger effect on those cities than a slowing of "bakugai" in Tokyo.

4 ( +5 / -1 )

seems to be really the beginning of the end for the Abenomics

I think it's already the middle of the end of Abenomics. I became 100% convinced of that as soon as Abe announced his 30,000 yen handouts to pensioners last year.

Hopefully the next person who talks about something similar to the enigma that was the third arrow can make a better fist of executing, rather than just talking.

Look around you will find all in the same boat more or less.Easy say than done.

It's not easy for politicians because they are paid handsomely and have no personal incentive to enact reforms that will upset the vested interests for the benefit of all.

Voters need to become better judges of the people they elect to represent them.

2 ( +3 / -1 )

I have been wondering in the midst of all of this buying of Japanese products such as electronics and cosmetics, are Chinese going to Korea and buying all of their products too? I know that Koreans always feel that their products are superior to Japanese products. I saw tons of Chinese people the last time I went to Seoul but had no idea if shopping was their purpose.

0 ( +0 / -0 )

I've mentioned this weeks ago, how China's devaluation of the yuan, and also later, the appreciation of the Japanese yen is going to cause this type of thing to happen. But on the bright side, at least Japan won't be able to complain about the Chinese tourists and their buses as much anymore, right?????

1 ( +1 / -0 )

This is more to do with the crashing stock market in China than the strength of the yen, which is still far weaker than it was 3 years ago. Consumer sentiment is weakening.

1 ( +1 / -0 )

This is more to do with the crashing stock market in China than the strength of the yen

If so, then Chinese tourists would have stopped going to Japan earlier, wouldn't you think?

0 ( +0 / -0 )

But when it comes to the Chinese pumping $$$ into their beloved Japan's economy, they're all good apparently.

Agreed

2 ( +3 / -1 )

"strong yen"

Who would be dumb enough to exchange a dollar for a measly 112 Japanese yen?

0 ( +1 / -1 )

Nikei is bleeding,already break resistance and now below 16,000.On the hand Yen is getting stronger,it goes around 111.7 per dollar.Yen is gonna break support level of 110.95 going to 106.63 which means real bad affects on Japan economy.Usually when Nikei is down Yen also should go down,but this is not the case as we can see.What does it mean?it means there are big speculations against Yen-forget about fairy tale of Yen as a safe heaven-for sure its organized speculations).My question what can best economists in the world can do in such a situation?!am not talking about Abe Shinzo or his Cabinet,i will agree with all criticism against him,in case some one can tell what can best economists or government can do?!Am telling,Yen is gonna reach 100 against dollar.For time being we will see soon level of 106 which is supposed to be catastrophic.If BOJ intervene-it should do-people will attack Abe Shinzo-as usual-while its should be a must.Down 115 is hurting economy,let alone 106.Bank of China chief blamed Speculations.Same with Japan.Am talking technically,not easy saying colorful opinions.

-1 ( +0 / -1 )

Yubaru, what do you mean 'party line'?

Read what I was quoting....

The quality of Chinese products meets our everyday needs,

Has NOTHING to do with the rate of exchange.

-1 ( +1 / -2 )

Instead of talkin all that nationalist mess should of got busy with them reforms. Knew this was going to happen; all too easy to predict

0 ( +1 / -1 )

“The quality of Chinese products meets our everyday needs,”

Depending on the type of products, that is highly questionable. I sure do not want to find out I have consumed food with industrial strength chemicals in there or even perhaps made with some thing that is not supposed to be consumed at all.

-2 ( +1 / -3 )

Guess Japan got what it asked for....

1 ( +1 / -0 )

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