2015 Data on the Internationalization of the Kyushu Economy. <Summary version>

Transcription

1 2015 Data on the Internationalization of the Kyushu Economy <Summary version>

2 2015 Data on the Internationalization of the Kyushu Economy (Main Points) Exposure in Asian degree The degree of Kyushu s economic linkage with Asia is higher than the nationwide totals in five categories (export value, number of companies entering overseas markets, number of foreign immigrants, number of international flights, and number of sister city affiliations), excluding import value. This is on year exhibits the strong link between Kyushu s economy and Asian markets. Trade In 2014, Kyushu s international trade totaled trillion (exports: trillion (up2.7% year on year); imports: trillion (up 3.0% year on year)). Exports rose for the second consecutive year but the balance of trade in goods was negative for the fourth straight year, with a trade deficit of trillion. (1) In 2014, Kyushu recorded all-time highs in the trade of goods with many countries and regions in Asia (imports: China, ASEAN, Malaysia, and the Philippines; exports: ASEAN, Vietnam, Thailand, and Indonesia). In addition, based on yen value, exports of motor vehicles rose to an all-time high, as did the import and export of parts of motor vehicles (see Table 1, page 75). (2) The export of motor vehicles from Kyushu increased for the first time in two years but stood above the 1 trillion mark for the third consecutive year. The majority of Kyushu s exports of motor vehicles went to China. This was followed by exports to nations/regions such as the US and the United Arab Emirates (refer to page 164). (3) Mineral fuels accounted for nearly 50% of total imports into Kyushu. Meanwhile, imports of semiconductors etc. increased substantially year-on-year. (Solar power cells and other materials for solar power generator systems made up around 60% of the total for semiconductors etc. imports.) More than 70% of semiconductors etc. imports to Kyushu came from China. This was followed by imports from countries/regions such as Taiwan and South Korea (refer to page 212). (4) In 2014, the global semiconductor market was brisk. Reflecting this, the brisk exports owing to yen depreciation, and a recovery in domestic demand, which was also evident in Kyushu, semiconductors etc. exports totaled billion, a rise of 19.1% year-on-year (refer to page 168). (5) The export of agricultural and marine products from Kyushu is also on the rise. In particular, meat of bovine animals exports were around 2.6 billion, a growth of 68.3% yearon-year, and wood (logs) were about 5.1 billion, an increase of 107.1% (refer to pages 182 and 184). Domestic and overseas investments In , a cumulative total of 1,065 Kyushu companies entered foreign markets. More than 80% of them is Asia, the number is 858. More than 40% of these companies entered China. In 2014, the number of companies that newly entered foreign markets was 12. The number of Kyushu companies entering foreign markets has been trending downward since the peak in 2010 (69 companies). Meanwhile as of 2014, 440 foreign companies entered the Kyushu market, of which Fukuoka Prefecture boasted the highest number of foreign companies (303). By nationality, 199 US firms have entered the Kyushu market, 59 German firms, 35 French firms, and 22 Swiss and South Korean firms. Human interactions In 2014, Kyushu posted a record high number of foreigners that immigrated to Kyushu 1.48 million, an increase of 21.5% year-on-year. By nationality, South Koreans accounted for 57.9% of the total number of immigrants to the area. This was followed by Taiwanese (14.3% of the total) and mainland Chinese (9.6% of the total). In addition, 17,830 international students were studying in Kyushu in 2014, a rise of 0.3% year-on-year. This accounted for 12.8% of the nationwide total. Meanwhile, 699 international students took jobs at Kyushu companies, representing 5.4% of the total number of international students that took jobs at Japanese companies. [Features and Topics] Opening feature this year is Global Expansion by Kyushu Companies Topics articles on the internationalization of the Kyushu economy are at the end of this document

3 2015 Data on the Internationalization of the Kyushu Economy (Table of Contents) Trade (Summary) Characteristics of Kyushu (Economic Exchanges with Asia) 1 Kyushu Trade (Summary) 2 Kyushu Trade Trends by Product Category 3 Kyushu Trade Relation Trends by Country and Region 4 Kyushu Trade Balance 5 Domestic and Overseas Investments Kyushu Companies Entering Overseas Markets 6 Investment in Kyushu by Foreign Companies 8 Human interactions Foreigners Immigrating to Kyushu 9 International Students in Kyushu 10 Trade (by nation and region) Summary of the Yellow Sea Rim Economic Bloc 11 Trade Trends between Kyushu and China 14 Trade Trends between Kyushu and South Korea 15 Trade Trends between Kyushu and Hong Kong 16 Trade Trends between Kyushu and Taiwan 17 Trade Trends between Kyushu and ASEAN 18 Trade Trends between Kyushu and Vietnam 20 Trade Trends between Kyushu and Thailand 21 Trade Trends between Kyushu and Singapore 22 Trade Trends between Kyushu and Malaysia 23 Trade Trends between Kyushu and the Philippines 24 Trade Trends between Kyushu and Indonesia 25 Trade Trends between Kyushu and India 26 Trade Trends between Kyushu and Russia 27 Trade Trends between Kyushu and the US 28 Trade Trends between Kyushu and the EU 29 Trade Trends between Kyushu and Australia 31 Trade trends by industry Motor vehicles 32 Parts of motor vehicles 33 Semiconductors etc. 34 Iron and steel products 35 Ships and boats 36 Food 37 Agricultural, marine, and processed foods 38 Mineral Fuels 41 Opening Feature: Global Expansion by Kyushu Companies 43 Topics (1) Comparison of trade trend value between Kyushu and other regions 44 (2) Trade trends for semiconductors etc. 45 (3) Technological Trade 46 (4) Asian Degree (2) 47 (5) Trade Trends with TPP and APEC members 48 (6) Japan and ASEAN Relations 49 (7) Tourism 50

4 Characteristics of Kyushu (Economic Exchanges with Asia) Six items are used to measure how much economic interchange has advanced between Kyushu and Asia. The six items are export value, import value, the number of Kyushu companies operating in Asia, the number of foreign nationals visiting Kyushu, the number of international flight routes between Kyushu and Asia, and the number of Kyushu municipalities forming sister city affiliations with municipalities in Asia. Based on these items, the share of Asian-related economic activities by Kyushu against its total economic activities is regarded as the Asian-degree.(Asian share in economic activities) The degree of Kyusyu s economic linkage with Asia was higher than the national average in 2014 in all six items except import values. This indicates that the Kyushu economy is closely linked to the Asian economy. Number of companies entering overseas markets 80.6% Comparison between Kyushu and Japan s national average in the Asian degree Export value 94.3% Number of foreign immigrants 59.3% 62.8% 80.7% 54.1% 67.6% 38.6% 35.3% 91.2% Number of international flights 45.0% 54.3% Import value Number of sister city affiliation Kyushu Nationwide Kyushu (2014) Nationwide (2014) Category Unit Asia Worldwide Asian degree Asian Worldwide Asian degree Number of companies Companies entering overseas markets 858 1, % 17,604 28, % Import value Hundred million yen 26,273 68, % 386, , % Number of sister city affiliation Companies % 592 1, % Number of international flights Flights % % Number of foreign immigrants People 1,393,280 1,477, % 11,419,147 14,150, % Export value Hundred million yen 34,229 57, % 395, , % Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics; Moji customhouse data; 2014 foreign market entry by local Kyushu and Yamaguchi companies, Kyushu Economic Research Center; 2015 Compendium of Japanese Companies Abroad, Toyo Keizai Inc.; Statistical Survey on Legal Migrants, Ministry of Justice; April 2015 JR Timetable, Transportation News Co, Ltd.; and the CLAIR (Council of Local Authorities for International Relations) homepage 1

5 Kyushu Trade (Summary) In 2014, Kyushu s international trade totaled trillion (exports: trillion (up 2.7% year on year); imports: trillion (up 3.0% year on year). Exports rose for the second consecutive year but the balance of trade in goods was deficit for the fourth consecutive year. Kyushu s trade has been trending at around 8% of the nationwide total for both imports and exports. Record highs in various categories in (Imports from China, exports to ASEAN, imports from ASEAN, exports to Vietnam, exports to Thailand, imports from Malaysia, imports from the Philippines, exports to Indonesia, motor vehicle exports, parts of motor vehicle exports, and imports) Brisk semiconductor market trends. In 2014, global production trended upward. Semiconductor demand also trended upward in Japan reflecting brisk exports owing to a weak yen and a recovery in domestic demand. Production values for ICs in Kyushu also trended upward. Semiconductor exports from Kyushu increased 19.1% year-on-year. Change in trade value by Kyushu and the share of trade value by Kyushu against Japan s total trade value Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics. 2

6 Kyushu Trade Trends by Product Category Product exports (based on yen value) from Kyushu to markets outside of Japan from highest downward are motor vehicles, semiconductors etc., flat-rolled products, ships and boats, and rubber tires and tubes. These five product categories accounted for nearly 50% of the total value of exports. Semiconductors etc was the largest contributor to the growth in export value in 2014 (degree of contribution was 1.7%). The largest value of exports from Kyushu, by order, was to South Korea, China, Hong Kong, Vietnam, and so on. Mineral fuels, including petroleum, petroleum gas and coal, accounted for nearly 50% of total imports. This was followed by the import of raw materials, including iron ore and concentrates, and ore of nonferrous. The largest contributor to the growth in import value in 2014 was semiconductors etc (degree of contribution was 1.1%). The largest value of imports to Kyushu, by order, was from China, Taiwan, South Korea, the Philippines, and so on. Mainstay export items in global trade for Kyushu (sub category) (Hundred million yen, %) Mainstay import items in global trade for Kyushu (sub category) (Hundred million yen, %) Scientific, optical inst 1, % Office machines 1, % Semicon machinery etc 1, % 19, % Total export value from Kyushu to world markets (2014) trillion Visual apparatus 2, % Organic chemicals 2, % Motor vehicles 10, % Ships and boats 4, % Rubber tires and tubes 3, % Semiconductors etc 5, % Flat-rolled products 4, % Organic chemicals 1, % Fish (fresh) % Parts of motor vehicles 1, % Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics. 22, % Total imports from world markets to Kyushu (2014) trillion Coal 3,911 ron ore and 5.7% concentrates Petroleum 3,591 products Semiconductors etc Ore and 5.3% 2, % 2, % nonferrous 3, % Petroleum 18, % Petroleum gas 7, % 3

7 Kyushu Trade Relation Trends by Country and Region China is Kyushu s largest trade partner. Next is South Korea and the US (based on total trade value) Exports in 2014 increased, mainly to China, where demand was brisk, primarily for semiconductors etc. Imports in 2014 mainly came from China. In recent years, the percentage of mineral fuels and raw materials is rising. Trade is increasing with raw material exporters, including Australia (No. 2 exporter to Kyushu in 2014) and Saudi Arabia (No. 3). Main countries and regions importing from Kyushu Main countries and regions exporting from Kyushu (Unit:100 million yen,, %) (Unit:100 million yen, %) Netherlands 1, % Panama 1, % United Arab Emirates 1, % Thailand 1, % 16, % Hong Kong 2, % Total exports from Kyushu to world markets (2014) trillion Taiwan 3, % China 12, % US 6, % South Korea 7, % China 10, % United Arab Emirates 4, % Singapore Indonesia 2,224 3, % 5.5% Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics. Kuwait 2, % Qatar 2, % 21, % US 3, % Total imports to Kyushu from world markets (2014) trillion South Korea 3, % Russia 3, % Australia 7, % Saudi Arabia 6, % 4

8 Kyushu Trade Balance In 2014, Kyushu s trade deficit was trillion. Although this is a contraction in comparison with the 2008 trade deficit of trillion, there is still a substantial trade deficit. (Japan s annual trade deficit in 2014 was a record high trillion.) By product, Kyushu posted a trade surplus in transport equip. and manufactured goods. However, Kyushu continued to record a substantial trade deficit for mineral fuels, including crude oil and natural gas. Accordingly, imports continued to exceed exports. Change in trade balance of Kyushu Trade balance of Kyushu by item (2014) (Hundred million yen) 20,000 14,320 10, ,878 7,424 4,778 4, ,000-10,412-4,730-8,056-20,000-30,000-32,388-40,000 Total Food Raw materials Mineral fuels Chemicals Manufactured goods Machinery Electrical machinery Transport equipment 2014 balance in trade with Kyushu s main trading partners (countries and regions) Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics. (Hundred million yen) Trade partner Trade surplus Trade partner Trade deficit South Korea 4,018 Australia -6,182 US 3,706 Saudi Arabia -5,774 Hong Kong 2,051 United Arab Emirates -2,976 Singapore 2,045 Indonesia -2,801 China 1,694 Russia -2,566 Kyushu s trade deficit (2014) trillion 5

9 Kyushu Companies Entering Overseas Markets (1) In , the cumulative number of Kyushu companies that entered foreign markets was 1,065 companies (3.8% of the nationwide total for the same period). As of 2014, the cumulative number of Japanese companies nationwide that entered foreign markets was 28,013 companies. On a cumulative basis, the number of Kyushu companies that entered Asian markets was 858 (80.6% of the total), 101 entered the North American market (9.5%), 65 entered the EU (6.1%), and 41 entered other countries and regions (3.8%). As shown, there is an overwhelming number of countries entering Asian markets. More than 40% of the total number of Kyushu companies venturing overseas set up shop in China. Overseas operations of Kyushu-based companies by country and region (Unit: No. of cases, %) Kyushu Unknown Nationwide As of 2014 Asia China Hong Kong Taiwan South Korea ASEAN Other Asian countries <ASEAN 4> <Asia NIEs> North America EU World Total % of total % of total % of total % of total % of total % of total % of total % of total % of total (Cumulative) % of total Record basis % of total Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on 2015 foreign market entry by local Kyushu and Yamaguchi companies, Kyushu Economic Research Center; and 2015 Compendium of Japanese Companies Abroad (by country), Toyo Keizai 6

10 Kyushu Companies Entering Overseas Markets (2) In 2014, 12 Kyushu companies newly entered overseas markets. This number of Kyushu companies entering overseas markets has been trending downward since the peak in 2010 (69 companies). Six companies, which was the largest number, entered into ASEAN countries. This was followed by China (two companies) and Taiwan (one company). The number of Kyushu companies entering Asia accounted for nearly 75% of the total number of Kyushu companies venturing overseas in Kyushu companies are shifting from China to ASEAN countries. Based on the cumulative total of Kyushu companies that entered overseas markets, Fukuoka Prefecture companies (726) accounted for nearly 70% of the total. This was followed by companies from Oita Prefecture, Nagasaki Prefecture, and Kumamoto Prefecture. Change in investment destinations Number of Kyushu Companies Entering Overseas Markets by Prefecture (Companies) Total 68 (Companies, %) Total Other Asian countries Total Total Total China 2 Hong Kong 0 Taiwan 1 South Korea 0 ASEAN 6 0 North America 2 EU 1 0 Total 12 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on 2015 foreign market entry by local Kyushu and Yamaguchi companies, Kyushu Economic Research Center 7

11 Investment in Kyushu by Foreign Companies The number of foreign companies, including branch offices, which had entered Kyushu was 440 as of Fukuoka Prefecture boasted the highest number of foreign companies, with a total of 303. This was following by Kumamoto and Kagoshima Prefectures. The main nationality of foreign companies in Kyushu is as follows: 199 US firms, 59 German firms, 35 French firms, and 22 Swiss and South Korean firms. The industry of the parent company of the foreign entities that entered Kyushu is diverse and includes the manufacturing, wholesale, financial, and service industries. Prefecture Main foreign-affiliated companies operating in Kyushu (including branches and sales outlets) (limited to companies starting operation in 2010 or after) Year of establishment (acceptance of foreign capital) Company name Nationality of parent Kyushu site Main products/services Fukuoka 2010 Inter Global Sou h Korea Head Quarters Planning, manufacturing, and Internet sales of sporting and o her goods Fukuoka 2010 JP Morgan Asset Management US Branch Investment management Fukuoka 2010 A liance Bernstein US Sales Asset management Fukuoka 2010 Techwin Engineering Center Sou h Korea Head Quarters Sem conductor, robot, and other R&D Fukuoka 2011 Humax Japan Sou h Korea Branch Sales related to cable television receiver Fukuoka 2011 Radiometer Denmark Sales Medical device import and sales Fukuoka 2012 ESRI Japan US O fice Import and export, sales, development, and services related to GIS software (maintenance, training, consulting, publishing, etc.) Fukuoka 2012 Nikon Trimble US O fice Manufacturing and sales of measurement instruments Fukuoka 2012 Hanwha Q Cells Japan Sou h Korea Branch Import and sales of solar power generator modules Fukuoka 2012 Buhler Switzerland Service station Food processing facilities, including mills Saga 2012 Amazon Japan Logistics US Fulfillment center Operational support for online store Amazon.co.jp Fukuoka 2013 KLM Royal Dutch Airlines Netherlands Branch International airline passengers Fukuoka 2013 Japan Grease UK/ Netherlands Sales Manufacturing and sales of lubricating o ls & grease, heat treated oil, tool oil, treated oil, anti-rust oil, lubr cant, standard o l for viscometers and other devices Oita 2013 Japan Texas Instruments US Packaging center Technolog cal development of semiconductor packaging Fukuoka 2014 ETW China Head Quarters Cloud marketing system Prefecture-by-prefecture breakdown of investment destinations for foreign companies in Kyushu (including branches and sales outlets) (2014) 255 Head Quarters Branch/sales office Factory Fukuoka Saga Nagasaki Kumamoto Oita Miyazaki Kagoshima Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on 2015 foreign market entry by local Kyushu and Yamaguchi companies, Kyushu Economic Research Center 8

12 Foreigners Immigrating to Kyushu In 2014, Kyushu posted a record high number of foreigners that immigrated to Kyushu 1.48 million, an increase of 21.5% year-onyear. By nationality, South Koreans accounted for 57.9% of the total number of immigrants to the area. This was followed by Taiwanese (14.3% of the total) and mainland Chinese (9.6%). The number of immigrants from China increased year-on-year. The number of immigrants from mainland China increased more than 70% year-on-year. Meanwhile, of those immigrants from the ASEAN region, the number of immigrants from Thailand increased nearly 90% and the number from Hong Kong increased nearly 80%. There has also been a sharp increase in the number of times cruise ships docked at ports in Kyushu. In 2013, cruise ships docked at ports in Kyushu 83 times versus 233 times in 2014, an increase of around 3-times. Change in the number of foreign nationals entering Kyushu and Japan Kyushu Nationwide (Person,%) 2014 No. of immigrants Vs. Growth No. of No. of Growth No. of % of total nationwide % of total % of total % of total (% ) immigrants immigrants (% ) immigrants total (% ) Total 1,477, ,216, ,150, ,255, Asia 1,393, ,156, ,419, ,882, Foreign cruise ship trends Europe Africa South Korea 855, , ,016, ,723, China 142, , ,536, ,604, Taiwan 211, , ,864, ,245, Hong Kong 83, , , , Vietnam 8, , , , Thailand 43, , , , Philippines 12, , , , Indonesia 4, , , , India 1, , , , M alaysia 6, , , , Other Asian countries/rejions 24, , , , , , ,106, , , , North America 39, , ,146, ,015, US 30, , , , Times Kagoshima harbor Nagasaki harbor Hakata harbor Other countries/regions 8, , , , South America , , Source: Profile of Kyushu Oceania 12, , , , Austra ia 10, , , , Other countries in Oceania 1, , , , Stateless Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Statistical Survey on Legal Migrants by the Ministry of Justice 9

13 International Students in Kyushu In 2014, there were 17,830 international students studying in Kyushu, a rise of 0.3% year-on-year. This is 12.8% of the total 139,185 international students in Japan. The number of international students in Kyushu increased year-on-year in The number increased 1.6-times versus 2004 (11,084). In Kyushu, more schools are taking on international students. By nationality, 52.6% of the international students in Kyushu, the higher percentage, were from China, 13.9% from Vietnam, and 8.6% from South Korea. On a nationwide basis, 12,958 international students in 2014 found employment, mainly at Japanese companies. Of this, 699 international students found employment at companies located in Kyushu. This only accounted for 5.4% of the nationwide total. (person) 25,000 Change in the number of foreign students in Kyushu % 14 Country by country foreign students accepted in Kyushu 20,000 15,000 10,000 5, ,176 8,886 10,383 11,084 11, , , , ,140 Change in the number of foreign students employed by companies in Kyushu , , , , No. of international students Versus nationwide total Number of person Nationwide share , 年 (%) Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on the results of a survey on international students enrolled in Japan in FY2014 by the Japan Student Services Organization Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on international student employment trends at Japanese companies in 2014, Immigration Bureau, Ministry of Justice (Unit: person, %) Kyushu Nationwide Country/region Versus No. of person % of total nationwide total No. of person % of total Asia 16, % 13.2% 127, % China 9, % 12.1% 77, % Vietnam 2, % 22.1% 11, % South Korea 1, % 11.0% 13, % Nepal 1, % 26.6% 5, % Indonesia % 17.5% 2, % Thailand % 12.8% 2, % Taiwan % 5.8% 4, % M alaysia % 7.9% 2, % Bangladesh % 18.8% % Other Asian countries/regions % 9.6% 5, % M iddle East % 6.1% 1, % Africa % 15.1% 1, % Oceania % 11.4% % North America % 7.6% 2, % Central/South America % 7.2% 1, % Europe % 8.6% 5, % T otal 17, % 12.8% 139, % Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on data from the international student survey by the Japan Student Services Organization 10

14 Summary of the Yellow Sea Rim Economic Bloc (1) The Yellow Sea Rim Economic Bloc is composed of the coastal areas facing the Yellow Sea along Kyushu, South Korea, and China. The bloc differs from those formed by crossnational agreements, such as the EU and ASEAN. It is a local economic bloc based on real economic connections, including trade, investment, and the movement of people. Population (10,000 people) Reference: The GDP ratio is the ratio of the regional GDP versus the total GDP of the respective country. Area (10,000 km 2 ) GDP (Hundred million yen) GDP ratio (% ) Kyushu 1, , % China (Yellow Sea Rim Bloc) 35, ,538, % South Korea (Yellow Sea Rim Bloc) 3, , % Total 39, ,711,484 [Diagram of the Yellow Sea Rim Bloc] [Beijing] Population 2,115 GDP 307,134 Per capita GDP 1,452,172 [Tianjin] Population 1,472 GDP 226,331 Per capita GDP 1,537,572 [Hebei] Population 7,333 GDP 445,747 Per capita GDP 607,865 [Shandong] Population 9,733 GDP 861,278 Per capita GDP 884,905 [Jiangsu] Population 7,939 GDP 931,798 Per capita GDP 1,173,697 [Shanghai] Population 2,415 GDP 340,233 Per capita GDP 1,408,833 [Legend] [Administrative district name] Population GDP Per capita GDP (Unit) 10,000 person Billion yen Yen/person [Liaoning] Population 4,390 GDP 426,474 Per capita GDP 971,466 [Incheon] Population 288 GDP 57,542 Per capita GDP 1,998,145 People's Republic of China Shenyang Liaoning Province Yingkou Qinhuangdao 皇島 Beijing Tangshan Tianjin Bohai Dalian Incheon Hebei Province Yantai Weihai Shanxi Province Henan Province Hubei Province Jinan Shandong Province Anhui Province Jiangxi Province Qingdao Jiangsu 江省 Province Hangzhou [Chung Cheong Nam-do] [Cholla Buk-do] Population 205 Population 187 GDP Per capita GDP 88,247 4,309,730 GDP Per capita GDP 37,836 2,020,128 *Yellow Sea Rim Bloc: Japan (Kyushu: Fukuoka, Saga, Nagasaki, Kumamoto, Oita, Miyazaki, Kagoshima Prefectures) China (Beijing, Tianjin, Heibei, Liaoning, Shanghai, Jiangsu, Shandong) South Korea (Busan, Incheon, Gwangju, Daejeon, Gyeonggi-do, Chung Cheong Nam-do, Cholla Buk-do, Cholla Nam-do, Kyung Sang Nam-do, and Jeju-do) Gwangju Yellow Sea Mokpo Nanking Suzhou Shanghai Ningbo Source: [Kyushu] Population: Population, demographics, and number of households based on the Basic Resident Registration (as of March 31, 2013), Ministry of Internal Affairs and Communications GDP: 2012 Domestic Gross Production (nominal), Annual Report on Prefectural Accounts, Cabinet Office Area: Nationwide area survey by administrative district, Ministry of Land, Infrastructure, Transport and Tourism [China] Population, GDP, and Area: China Economic Data Handbook (2014 edition) (data current for 2013) [South Korea] Population: National statistics portal, 2013, Statistics Korea GDP: National statistics portal, Statistics Korea Area: Korea Statistics Yearbook 2014 [Gyeonggi-do] Population 1,223 GDP 279,167 Per capita GDP 2,281,776 Democratic People's Republic of Korea Seoul Republic of Korea 邸 Seosan Daegu Gunsan Busan 麗 Yeosu Fukuoka Saga Oita Nagasaki Kumamoto Miyazaki Kagoshima [Gwangju] Population 147 GDP 26,489 Per capita GDP 1,798,429 [Jeju] Population 59 GDP 11,746 Per capita GDP 1,978,053 [Daejeon] Population 153 GDP 27,996 Per capita GDP 1,826,422 Japan Pacific Ocean [Cholla Nam-do] Population 191 GDP Per capita GDP 55,438 2,906,798 [Kagoshima] Population 170 GDP 53,472 Per capita GDP 3,142,828 [Kyung Sang Nam-do] Population 333 GDP 88,661 Per capita GDP 2,659,450 [Busan] Population 353 GDP 62,601 Per capita GDP 1,774,581 [Fukuoka] Population 511 GDP 179,122 Per capita GDP 3,508,454 [Saga] Population 85 GDP 26,445 Per capita GDP 3,098,953 [Nagasaki] Population 143 GDP 44,034 Per capita GDP 3,085,476 [Kumamoto] Population 183 GDP 56,395 Per capita GDP 3,089,548 [Oita] Population 120 GDP 41,988 Per capita GDP 3,500,779 [Miyazaki] Population 114 GDP 35,310 Per capita GDP 3,093,149 11

15 Summary of the Yellow Sea Rim Economic Bloc (2) 250,000 Comparison with Other Regional Economic Blocs (2013; graph) The population of the Yellow Sea Rim Economic Bloc is around 400 million people. This is small in contrast with the other regional economic blocs. However, the region s GDP is just shy of US$5 trillion, which surpass that of ASEAN and MERCOSUR. 200, , ,000 50,000 Population (10,000 people) GDP (hundred million US dollars) Trade (hundred million US dollars) 0 ASEAN Yellow Sea Rim Area EU NAFTA MERCOSUR Comparison with Other Regional Economic Blocs (2013) Members Population GDP Per capital GDP T rade (US$) (10,000 people) (hundred million US dollars) (hundred mlion US do lars) Association of Southeast Asian Nations (ASEAN) Yellow Sea Rim area European Union (EU) North American Free Trade Agreement (NAFT A) 10 countries 61,202 24,568 4,014 25,203 (3 countries) 39,863 48,273 12,110 53, countries 51, ,551 33, ,993 3 countries 48, ,923 41,533 56,122 Reference: Includes estimates Trade balance for the Yellow Sea Bloc is the total for Kyushu, China, and South Korea trade in 2013 Population and GDP for Kyushu is the total for 2012 NAFTA members (US, Canada, Mexico) MERCOSUR members (Argentina, Brazil, Paraguay, Uruguay, Venezuela) Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on UNCTADstat for regions outside of the Yellow Sea Bloc Refer to Figure for population and GDP for the Yellow Sea Bloc. Trade statistics are based on Ministry of Finance trade statistics. Compiled by the Kyushu Bureau of Economy, Trade and Industry based on the World Trade Atlas. Southern Common Market or Mercado Comun del Sur (MERCOSUR) 5 countries 29,309 32,371 11,045 8,546 12

16 Summary of the Yellow Sea Rim Economic Bloc (3) Trade value involving Kyushu, China, and South Korea (2014) In the Yellow Sea Rim Economic Bloc, South Korea exported US$ billion in goods to China, the highest level within the bloc. This was followed by exports from China to South Korea, which totaled US$100.4 billion. In 2014, trade between Kyushu and China increased but trade between Kyushu and South Korea decreased. Trade value involving Kyushu, China, and South Korea Trade (US$ hundred million) Kyushu and China Kyushu and South Korea China and South Korea (right scale) Trade (US$ hundred million) 3,000 2,500 2,000 Unit: 100 million US dollar ( 1 dollar = yen) Note: Trade between China and South Korea covered the enter areas of the two countries. Sources: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on data provided by the Moji Customs, overseas economic data released by the Cabinet Office, and statistics included in the World Trade Atlas. 1, , Kyushu and China Kyushu and South Korea China and South Korea (right scale) ,140 1,381 1,653 1,403 1,856 2,171 2,220 2,370 2,457 0 Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics and Global Trade Atlas 13

17 Trade Trends between Kyushu and China In 2014, the export of goods from Kyushu to China totaled trillion, an increase of 6.8% year-on-year. This was the second consecutive year of growth. Meanwhile, imports from China to Kyushu totaled trillion, a growth of 19.0%. This was the fifth consecutive year of growth. In addition, the import value was a record high. Export values starting from the highest are as follows: motor vehicles, semiconductors etc, and semicon machinery etc. In 2014, exports were brisk for motor vehicles and semicon machinery etc. substantially outperforming exports in the previous year. A diverse range of products are being imported. Trends in 2014 was similar to those in previous year. Semiconductors etc increased substantially. In addition, furniture and parts of motor vehicles also increased. The overall import value increased considerably year-onyear. Change in value of trade between Kyushu and China Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics. Main export and import items in trade between Kyushu and China Export items Export value Motor vehicles 3,048 Semiconductors etc 1,043 Semicon machinery etc 979 Organic chemicals (xylene, etc.) 913 Copper and copper alloys 805 Visual apparatus 681 Flat-rolled products 657 Scientific, optical inst 532 Ferrous waste and scrap 167 3,816 Import items Import value Semiconductors etc 1,447 Furniture 684 Parts of motor vehicles 610 Organic chemicals 445 Office machines 439 Audio and visual apparatus 388 Feeding-stuff for animals 309 Knitted or crocheted fabrics 278 Vegetables 261 Plastic 244 Insulated wire and cable 208 Heating or cooling machine 183 5,453 14

18 Trade Trends between Kyushu and South Korea In 2014, exports from Kyushu to South Korea totaled billion, a decrease of 3.7% year-on-year, while imports from South Korea to Kyushu came to billion, a decline of 2.9%. As this shows, both import and export values declined. Export values starting from the highest are as follows: semiconductors etc, flat-rolled products, and semicon machinery etc. In 2014, exports were brisk for semiconductors etc, outperformed the level of exports in the previous year. Import values starting from the highest are as follows: petroleum products, flat-rolled products, and semiconductors etc. Imports of petroleum products (heavy fuel oils) and semiconductors etc, which were brisk in 2013, declined and underperformed the level of imports in the previous year. Change in value of trade between Kyushu and South Korea Main export and import items in trade between Kyushu and South Korea Export items Export value Semiconductors etc 1,365 Flat-rolled products 847 Semicon machinery etc 709 Organic chemicals (xylene, etc.) 591 Plastic materials 522 Scientific, optical inst (electronic microscopes etc) 512 Motor vehicles 182 Ferrous waste and scrap 181 Paints 92 Copper and copper alloys 88 Electrical power machinery 73 1,985 Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance Import items Import value Petroleum products (heavy fuel oil, etc.) 588 Flat-rolled products 296 Semiconductors etc 281 Machinery (heating or cooling machinery ) 231 Parts of motor vehicles 222 Organic chemicals 155 T elephony, telegraphy 54 Fish (fresh) 50 Feeding-stuff for animals 50 Antibiotics preparation 47 Iron and steel wire, bars 47 1,108 15

19 Trade Trends between Kyushu and Hong Kong In 2014, exports from Kyushu to Hong Kong totaled billion, an increase of 17.7% year-on-year (the third consecutive year of growth), while imports from Hong Kong to Kyushu came to 11.4 billion, a sharp decline of 53.2%. Kyushu continues to maintain a huge trade surplus with Hong Kong. Export values starting from the highest are as follows: semiconductors etc., followed by visual apparatus and ships and boats. In 2014, exports were especially brisk for semiconductors etc., shoring up the overall level of exports from the previous year. Import values starting from the highest are as follows: fish (fresh), followed by ferrous waste and scrap and miscellaneous articles. Imports of fish (fry for eels), which were brisk in 2013, rapidly declined in Consequently, import value was down from the previous year. Change in value of trade between Kyushu and Hong Kong Main export and import items in trade between Kyushu and Hong Kong Export items Export value Semiconductors etc 1,032 Visual apparatus 186 Ships and boats 104 Petroleum products (kerosene, etc.) 88 Motor vehicles 69 Plastic materials 50 Organic chemicals 41 Construction machines Import items Import value Fish (fresh) (fry for eels) 42 Iron and steel scrap 24 Miscellaneous articles 8 T elephony, telegraphy 7 Semiconductors etc 1 Office machines 1 30 Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics. 16

20 Trade Trends between Kyushu and Taiwan In 2014, exports from Kyushu to Taiwan totaled billion, an increase of 3.5% year-on-year, the second consecutive year of growth, while imports from Taiwan to Kyushu came to billion, a growth of 27.0%, the first growth in two years. Export values starting from the highest are as follows: other chemical materials n.e.s., semiconductors etc., and motor vehicles. In 2014, exports were brisk for ships and boats and power generating machine, largely shoring up the overall level of exports versus the previous year. Import values starting from the highest are as follows: semiconductors etc., scientific, optical inst., and non-ferrous metal scrap (ash and residues). In 2014, imports of semiconductors etc. were brisk. Consequently, the import value rose sharply from the previous year. Change in value of trade between Kyushu and Taiwan Main export and import items in trade between Kyushu and Taiwan Export items Export value Chemical materials n.e.s. 559 Semiconductors etc 470 Motor vehicles 364 Organic chemicals 215 Power generating machine 195 Flat-rolled products 139 Copper and copper alloys 131 Scientific, optical inst 129 Semicon machinery etc 112 Pump and centrifuges 69 Inorganic chemicals 62 1,008 Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics. Import items Import value Semiconductors etc 789 Scientific, optical inst 178 Non-ferrous metal scrap (ash and residues) 91 Plastic materials 65 Organic chemicals 34 T elephony, telegraphy 23 Plastic 23 Synthetic rubber 22 Audio and visual apparatus 21 Flat-rolled products

21 Trade Trends between Kyushu and ASEAN (1) In 2014, exports from Kyushu to ASEAN totaled billion, an increase of 0.9% year-on-year, the third consecutive year of growth, while imports from ASEAN to Kyushu came to billion, a growth of 7.5%, the second consecutive year of growth. This was a record high for both imports and exports. Among ASEAN members, the largest exporter from Kyushu was Singapore, which mainly exported products such as gold, semiconductors etc., and visual apparatus. This was followed by Thailand and Vietnam. (The countries that boasted a large growth in exports to Kyushu were Laos, Brunei, Cambodia, and Myanmar.) Meanwhile, the country with the highest import value was Indonesia, which imported goods such as petroleum gas and petroleum from Kyushu. This was followed by Thailand and Malaysia. (The countries that marked a large growth in imports from Kyushu were Brunei, Myanmar, Laos, and the Philippines.) Change in value of trade between Kyushu and ASEAN (hundred million yen, %) Versus nationwide total (%) 10,000 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 9% 8% 7% 6% 5% 4% 3% 2% Kyushu s exports to ASEAN countries and imports from ASEAN countries Country Vietnam Thailand Singapore Malaysia Brunei Philippines Indonesia Cambodia Laos Myanmar ASEAN total Exports Value % of total Growth Contribution Vs. nationwide total Imports Value % of total Growth Contribution (Unit: 100 million yen, %) Vs. nationwide total 1, % 18.4% 2.3% 9.3% % 0.5% 0.1% 5.9% 1, % 4.0% 0.9% 5.9% 1, % 2.8% 0.6% 7.9% 2, % -9.5% -2.9% 10.0% % -11.8% -0.3% 2.2% 1, % -8.8% -1.32% 7.2% 1, % 13.7% 1.9% 4.5% % 75.3% 0.06% 9.8% % 160.8% 2.1% 7.2% % 10.9% 0.7% 5.4% 1, % 21.0% 2.1% 10.0% % 7.0% 0.8% 6.1% 3, % 2.2% 0.9% 13.8% % 55.6% 0.08% 6.2% % 17.0% 0.1% 5.0% % 477.4% 0.01% 0.5% % 26.3% 0.01% 2.1% % 39.9% 0.3% 6.4% % 56.6% 0.08% 2.2% 8, % 0.9% 0.9% 7.3% 9, % 7.5% 7.5% 7.8% 1,000 1% Exports Imports Vs. nationwide exports Vs. nationwide imports 0 0% ,125 4,758 5,931 5,763 6,374 6,654 6,083 7,632 7,313 5,592 7,072 6,878 6,939 7,979 8,049 4,351 4,491 4,819 4,953 5,260 6,089 7,530 8,263 9,119 5,665 7,099 8,399 7,969 8,884 9, % 7.2% 8.5% 8.1% 8.1% 8.0% 6.9% 7.5% 6.8% 7.5% 7.2% 7.0% 6.7% 7.4% 7.3% 6.8% 6.8% 7.5% 7.3% 7.2% 7.6% 8.1% 8.1% 8.2% 7.8% 8.0% 8.4% 7.7% 7.7% 7.8% Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics. 18

22 Trade Trends between Kyushu and ASEAN (2) Products with the highest export values were as follows: semiconductors etc. (mostly to Vietnam, Singapore, Thailand, and Malaysia), and flat-rolled products (mostly to Thailand, the Philippines, and Indonesia). In 2014, exports were brisk for semiconductors etc., substantially shoring up the overall level of exports from the previous year. Products with the highest import values were as follows: petroleum gas (mostly from Indonesia and Malaysia), petroleum (mostly from Indonesia), coal (majority from Indonesia), and insulated wire and cable (majority from Vietnam, the Philippines, and Indonesia). In 2014, imports of petroleum gas (increased mainly from Brunei and Indonesia) increased. Consequently, the import value rose considerably from the previous year. Change in value of trade between Kyushu and ASEAN Export items Export value Semiconductors etc 1,452 Flat-rolled products 1,404 Gold 758 Ships and boats 304 Office machines 274 Motor vehicles 272 Visual apparatus 267 Iron and steel wire, bars 247 Organic chemicals 243 Copper and copper alloys 208 Rubber tires and tubes 192 Power generating machine 163 2,265 Import items Import value Petroleum gas (liquefied natural gas, etc.) 1,857 Petroleum 1,033 Coal 606 Insulated wire and cable 579 Natural rubber 576 Petroleum products 453 Ore of nonferrous (copper.) 408 Parts of motor vehicles 362 Furniture 275 Semiconductors etc 241 Pulpwood and the like 146 Plywood and wood panel 135 2,880 Major export items from Kyushu to ASEAN members Vietnam % Indonesia % Vietnam % Phi ippines % Malaysia % % Export of flat-rolled products to ASEAN countries totaled billion in 2014 Malaysia 2 0.8% Thailand Philippines % 7.0% % Export of office machines to ASEAN countries totaled 27.4 bi lion in 2014 Thailand % Singapore % Philippines 5 1 6% Indonesia % Malays a 2 0.8% Malaysia % Thailand % Thailand % Vietnam Export of ships and boats to ASEAN countries totaled 30.4 billion in % Philippines % % Export of semiconductors etc to ASEAN countries totaled b llion in 2014 Indonesia % Singapore % Philippines % Malaysia % % Vietnam % Export of motor vehicles to ASEAN countries totaled 27.2 bi lion in 2014 Myanmar % Singapore % Major imports items from ASEAN members to Kyushu Malaysia % Brunei % Import of petroleum gas from ASEAN countries totaled b llion in % Thailand Cambodia % % Indonesia % Philippines % Import of insulated wire and cable from ASEAN countries totaled 57.9 b llion in 2014 Indonesia 1, % Vietnam % Vietnam 9 1.5% Indonesia % Import of coal from ASEAN countries totaled 60.6 b llion in 2014 Vietnam % Import of petroleum from ASEAN countries totaled b llion in 2014 Indonesia % Vietnam 1 0 2% Import of natural rubber from ASEAN countries totaled 57.6 bil ion in 2014 Thailand % Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics. Singapore % Indonesia % 19

23 Trade Trends between Kyushu and Vietnam In 2014, exports from Kyushu to Vietnam totaled billion, an increase of 18.4% year-on-year, the fifth consecutive year of growth, while imports from Vietnam to Kyushu came to 96.3 billion, a growth of 0.4%. This was a record high for exports from Kyushu to Vietnam. Export values starting from the highest were as follows: semiconductors etc., flat-rolled products, and office machines. In 2014, exports were brisk for semiconductors etc., largely shoring up the overall level of exports from the previous year. Import values starting from the highest were as follows: insulated electric wire and cable, furniture, and pulpwood and the like. In 2014, imports of petroleum decreased substantially. Change in value of trade between Kyushu and Vietnam Main export and import items in trade between Kyushu and Vietnam Export items Export value Semiconductors etc 540 Flat-rolled products 149 Office machines 73 Power generating machine 62 Organic chemicals 30 Rubber tires and tubes 23 Fish (fresh) 21 Cycles with engines 20 Construction machines 18 Electrical apparatus 16 Iron and steel wire, bars Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics. Import items Import value Insulated wire and cable 228 Furniture 146 Pulpwood and the like 96 Fish (fresh) 43 Plastic 32 Petroleum 31 Fish preparation 24 Cocks, valves and parts 23 Scientific, optical inst 21 Parts of motor vehicles 20 Fish meal and flour

24 Trade Trends between Kyushu and Thailand In 2014, exports from Kyushu to Thailand totaled billion, an increase of 4.0% year-on-year. This marked the third consecutive year of growth for exports. Meanwhile imports from Thailand to Kyushu came to billion, a growth of 2.8%, the second consecutive year of growth. This was a record high for exports from Kyushu to Thailand. Export values starting from the highest were as follows: flat-rolled products, semiconductors etc., and iron and steel wire, bars. In 2014, exports were brisk for flat-rolled products and semiconductors etc., shoring up the overall level of exports versus the previous year. Import values starting from the highest are as follows: natural rubber, parts of motor vehicles, and plastic materials. Change in value of trade between Kyushu and Thailand Main export and import items in trade between Kyushu and Thailand Export items Export value Flat-rolled products 760 Semiconductors etc 252 Iron an steel wire, bars 182 Copper and copper alloys 122 Organic chemicals 100 Plastic materials 77 Power generating machine 41 Polyethylene 34 Parts of motor vehicles 21 Metal working machinery 19 Semicon machinery etc Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics. Import items Import value (billion yen) Natural rubber 301 Parts of motor vehicles 215 Plastics materials 89 Meat and meat products 84 Rubber manufactured 58 Sugar 54 Audio and visual apparatus 54 Fish(fresh) 54 Semiconductors etc. 42 T in and tin alloys 41 Synthetic resins 41 Rice 39 Scientific, optical inst 38 Pulp wood and the like

25 Trade Trends between Kyushu and Singapore In 2014, exports from Kyushu to Singapore totaled billion, a decrease of 9.5% year-on-year. This was the first decline in two years. Meanwhile imports from Singapore to Kyushu came to 18.0 billion, a decline of 11.8%. This was the second consecutive year of decline in imports. Kyushu continues to maintain a huge trade surplus with Singapore. Export values starting from the highest were as follows: semiconductors etc., visual apparatus, and ships and boats. Import values starting from the highest were as follows: semiconductors etc., non-ferrous metal scrap (including copper waste and scrap), and scientific, optical inst. In 2014, the import of semiconductors etc., declined sharply. Consequently the level of imports from Singapore dropped from the previous year. Change in value of trade between Kyushu and Singapore (Hundred million yen) Versus nationwide total (%) 3,000 18% 2,500 15% 2,000 12% 1,500 9% Main export and import items in trade between Kyushu and Singapore Export items Export value Gold 524 Semiconductors etc 342 Visual apparatus 266 Ships and boats 240 Office machines 169 Structural parts 132 Motor vehicles 65 Aluminum 50 Petroleum products (gas oil etc.) 47 Flat-rolled products Exports Imports 1,000 Vs. nationwide exports Vs. nationwide imports ,483 1,352 1,738 1,541 1,842 1,795 1,778 2,029 1,983 1,920 2,612 2,582 2,371 2,458 2, % 7.6% 9.8% 9.0% 9.5% 8.8% 7.9% 7.9% 7.2% 9.9% 11.8% 11.9% 12.8% 12.0% 10.0% 2.1% 2.2% 1.8% 2.1% 1.8% 2.6% 3.2% 3.4% 4.0% 3.7% 3.5% 4.0% 4.9% 2.8% 2.2% Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics. 6% 3% 0% Import items Import value Semiconductors etc. 40 Non-ferrous metal scrap (copper waste and scrap, etc.) 31 Scientific, optical inst 21 Plastic (synthetic resins, etc.) 15 Other food preparation 15 Petroleum products 9 Synthetic resins 9 Semicon machinery etc 7 Synthetic rubber

26 Trade Trends between Kyushu and Malaysia In 2014, exports from Kyushu to Malaysia totaled billion, a decrease of 8.8% year-on-year. This was the first decline in four years. Meanwhile imports from Malaysia to Kyushu came to billion, an increase of 13.7% and the fifth consecutive year of growth. The trade deficit with Malaysia increased due to the growth in imports. Imports were at a record high level. Export values starting from the highest were as follows: gold, non-monetary, semiconductors etc., and flat-rolled products. In 2014, exports declined due to weak demand for products such as copper and copper alloys, and motor vehicles. Import values starting from the highest were as follows: liquefied natural gas, petroleum products (heavy fuel oils, etc.), plywood and wood panel. In 2014, the import of petroleum products (heavy fuel oils, etc.) increased substantially. Change in value of trade between Kyushu and Malaysia Main export and import items in trade between Kyushu and Malaysia Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics. Export items Export value Gold 234 Semiconductors etc 233 Flat-rolled products 94 Mechanical handling equip 70 Motor vehicles 46 Glass and glassware 43 Aluminum 30 Inorganic chemicals 27 Paints 26 Power generating machine 21 Rubber tires and tubes 19 Parts of motor vehicles Import items Import value Liquefied natural gas 502 Petroleum products (heavy fuel oils, etc.) 381 Plywood and wood panel 69 Audio and visual apparatus 48 Furniture 40 Semiconductors etc 40 Fertilizers 35 Scientific, optical inst 32 Crude vegetable materials 26 T in and tin alloys 22 Parts of motor vehicles 15 Polyethylene 14 Wood

27 Trade Trends between Kyushu and the Philippines In 2014, exports from Kyushu to the Philippines totaled 56.5 billion, an increase of 10.9% year-on-year. This was the first increase in two years. Meanwhile imports from the Philippines to Kyushu came to billion, an increase of 21.0%. This was the second consecutive year of growth in imports. This was also a record high level of imports. Export values starting from the highest were as follows: flat-rolled products, semiconductors etc., and re-export goods. Import values starting from the highest were as follows: ore of nonferrous (copper etc.), insulated wire and cable, and semiconductors etc. In 2014, there was a growth in the import of ore of nonferrous (copper etc.) and semiconductors etc., which boosted the overall import value. Change in value of trade between Kyushu and the Philippines Main export and import items in trade between Kyushu and the Philippines Export items Export value Flat-rolled products 187 Semiconductors etc 63 Re-export goods 41 Organic chemicals 37 Textile yarn and thread 34 Motor vehicles 34 Office machines 19 Scientific, optical inst 11 Parts of motor vehicles 8 Plastic materials 7 Construction machines Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics. Import items Import value Ore of nonferrous (copper etc.) 282 Insulated wire and cable 224 Semiconductors etc 109 Fruits 100 Wooden manufactured 59 Parts of motor vehicles 57 Electrical power machinery 49 Non-ferrous metal scrap (brass of bronze waste) 18 Office machines 16 Plastic

28 Trade Trends between Kyushu and Indonesia In 2014, exports from Kyushu to Indonesia totaled 94.9 billion, an increase of 7.0% year-on-year. This was the third consecutive year of growth. Meanwhile imports from Indonesia to Kyushu came to billion, an increase of 2.2%. This was the second consecutive year of growth in imports. Kyushu continues to post a huge trade deficit with Indonesia. However, exports were at an all-time high. Export values starting from the highest were as follows: flat-rolled products, rubber tires and tubes, and copper and copper alloys. In 2014, the exports rose year-on-year owing to brisk demand for products such as ships and boats and scientific, optical inst. Import values starting from the highest were as follows: petroleum gas (liquefied natural gas, etc.), petroleum, and coal. Resource related products accounted for 50% of total imports. Change in value of trade between Kyushu and Indonesia Main export and import items in trade between Kyushu and Indonesia Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics. Export items Export value Flat-rolled products 172 Rubber tires and tubes 119 Copper and copper alloys 73 Ships and boats 57 Organic chemicals 54 Iron and steel wire, bars 47 Motor vehicles 39 Plastics materials 39 Inorganic chemicals 30 Power generating machine 29 Scientific, optical inst Import items Import value Petroleum gas (liquefied natural gas, etc.) 1,049 Petroleum 1,003 Coal 597 Natural rubber 273 Ore of non-ferrous (copper etc.) 122 Insulated wire and cable 86 Plywood and wood panel 63 Parts of motor vehicles 55 Petroleum products (heavy fuel oils, etc.) 45 Fish (fresh)

29 Trade Trends between Kyushu and India In 2014, exports from Kyushu to India totaled 59.0 billion, a decrease of 21.9% year-on-year. This was the first decrease in two years. Meanwhile imports from India to Kyushu came to 49.2 billion, a decrease of 25.4%, and the second consecutive year of growth. Export values starting from the highest were as follows: flat-rolled products, cokes, and textile yarn and thread. Import values starting from the highest were as follows: petroleum spirits, spiegeleisen and ferro-alloy, and feeding-stuff for animals. Change in value of trade between Kyushu and India Main export and import items in trade between Kyushu and India Export items Export value Flat-rolled products 135 Cokes 82 Textile yarn and thread 72 Re-exported goods 57 Organic chemicals 29 Power generating machine 21 Rails & railway materials 16 Rubber tires and tubes 14 Metal working machinery 13 Electrical power machinery 12 Synthetic fibers Import items Import value Petroleum spirits 196 Spiegeleisen and ferro-alloy 34 Feeding-stuff for animals 32 Fish (fresh) 30 Iron ore and concentrates 21 Organic chemicals 20 Parts of motor vehicles 20 Clothing 18 Machinery (power generating machine etc.) 16 Textile yarn, fabrics 15 Synthetic organic dye stuff 9 Fruits 9 Source: Compiled by the Kyushu Bureau of Economy, Trade and 72 Industry based on Ministry of Finance trade statistics. 26

30 Trade Trends between Kyushu and Russia In 2014, exports from Kyushu to Russia totaled 61.3 billion, a decrease of 43.3% year-on-year. This was the second consecutive year of decline. Meanwhile imports from Russia to Kyushu came to billion, a decrease of 4.2%. This was the first decline in imports in two years. Export values starting from the highest were as follows: rubber tires and tubes, parts of motor vehicles, and power generating machine. Import values starting from the highest were as follows: petroleum, liquefied natural gas, and coal. Change in value of trade between Kyushu and Russia Main export and import items in trade between Kyushu and Russia Export items Export value Rubber tires and tubes 324 Parts of motor vehicles 111 Power generating machine 42 Motor vehicles 20 Insulated wire and cable 12 Cycles with engines 11 Automotive electrical good 8 Furniture 8 Office machines 5 Heating or cooling machine 4 66 Import items Import value Petroleum 1,640 Liquefied natural gas 823 Coal 236 Fish (fresh) 191 Aluminum & aluminum alloys 90 Petroleum spirits 79 Spiegeleisen & ferro-alloy 68 Synthetic rubber 24 Potassic fertilizers 9 Wood 5 Source: Compiled by the Kyushu Bureau of Economy, Trade and 14 Industry based on Ministry of Finance trade statistics. 27

31 Trade Trends between Kyushu and the US In 2014, exports from Kyushu to the US totaled billion, a decrease of 11.4% year-on-year. This was the second consecutive year of decline. Meanwhile imports from the US to Kyushu came to billion, an increase of 3.2%. This was the second consecutive year of growth. Export values starting from the highest were as follows: motor vehicles, office machines, and rubber tires and tubes. In 2014, exports decline substantially reflecting a considerable drop in exports of motor vehicles. Import values starting from the highest were as follows: maize, unmilled, feeding-stuff for animals, and inorganic chemicals. In 2014, maize, unmilled imports grew substantially. Change in value of trade between Kyushu and the US Main export and import items in tradde between Kyushu and the US Export items Export value Motor vehicles 2,566 Office machines 478 Rubber tires and tubes 478 Visual apparatus 417 Cycles with engines 365 Chemical materials n.e.s. 253 Semiconductors etc 202 Flat-rolled products 191 Rails & railway materials 174 Power generating machine 147 Automotive electrical good 133 1,370 Import items Import value Maize, unmilled 709 Feeding -stuff for animals 233 Inorganic chemicals 203 Coal 190 Petroleum products (liquefied petroleum gas, etc.) 166 Fish (fresh) 145 Organic chemicals 138 Wheat and meslin 131 Liquefied petroleumgas 120 Ore of nonferrous 111 Power generating machine 96 Fruits and vegetables 85 Source: Compiled by the Kyushu Bureau of Economy, Trade and 739 Industry based on Ministry of Finance trade statistics. 28

32 Trade Trends between Kyushu and the EU (1) In 2014, exports from Kyushu to the EU totaled billion, an increase of 14.6% year-on-year. This was the first increase in three years. Meanwhile imports from the EU to Kyushu came to billion, an increase of 8.5%. This was the third consecutive year of growth. Kyushu s major export partners (based on highest export value) were the Netherlands, which mostly imports motor vehicles and visual apparatus from Kyushu, Germany, and Belgium. Meanwhile, Kyushu s major import partners (based on highest import value) was Germany, from which it imports organic chemicals and electrical power machinery. This was followed by France and Spain. Change in value of trade between Kyushu and the EU Main export and import items in trade between Kyushu and the EU Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics. 29 Country Export value % of total Netherlands 1, % Germany % Belgium % UK % France % Italy % Spain % Sweden % Cyprus % Austria % Poland % Czech Republic % Ireland % Hungary % Denmark % Slovakia % Latvia % Finland % Lithuania 9 0.2% Romania 9 0.2% Greece 8 0.2% Slovenia 8 0.2% Estonia 4 0.1% Bulgaria 3 0.1% Portugal 3 0.1% Malta % Croatia % Luxembourg % Total 4, % Country Import value % of total Germany % France % Spain % UK 134 8% taly 116 7% Belgium 99 6% Finland 80 5% Netherlands 76 4% Denmark 53 3% Sweden 50 3% Austria 42 2% Poland 22 1% Portugal 21 1% Romania 20 1% Luxembourg 11 1% Czech Republic 10 1% Hungary 10 1% Ireland 7 0.4% Estonia 3 0 2% Greece 2 0.1% Slovenia 1 0.1% Lithuania 1 0.1% Slovakia 1 0.1% Croatia 1 0.1% Latvia 1 0.1% Bulgaria % Malta % Cyprus % Total 1, %

33 Trade Trends between Kyushu and the EU (2) Products with the highest export values were as follows: motor vehicles (mainly shipped to the UK, Netherlands, and Spain), followed by office machines (mostly to the Netherlands) and rubber tires and tubes (mostly to Belgium, Germany, and the UK). In 2014, exports were brisk for motor vehicles, substantially shoring up the overall level of exports from the previous year. Products with the highest import values were as follows: power generating machine (mostly from France), followed by liquefied natural gas (from Belgium and Spain), and parts of motor vehicles (mostly from Spain and Germany). Import and export items between Kyushu and the EU Kyushu s major export items to the EU Major import items from the EU to Kyushu Export items Export value Motor vehicles 703 Office machines 491 Rubber tires and tubes 444 Visual apparatus 442 Semiconductors etc 411 Cycles with engines 303 Pump and centrifuges 177 Automotive electrical good 136 Organic chemicals 127 Dyeing tanning, colouring 127 Power generating machine 95 1,012 Import items Import value Power generating machine 204 Liquefied natural gas 112 Parts of motor vehicles 80 Organic chemicals 73 Electrical power machinery 68 Aircraft 67 Meat of swine, wild boars 43 Plastic materials 42 Pump and centrifuges 41 Inorganic chemicals 37 Cereals, cereal preparation 37 Paper and paper manufactures 36 Semiconductors etc Czech % Spain % Spain % Sweden % UK % Poland % Italy % Italy % % Exports of motor vehicles to the EU totaled 70.3 billion in % Germany % Netherlands % Exports of rubber tires and tubes to the EU totaled 44.4 billion in 2014 UK % Belgium % Sweden 7 1.5% Slovakia % Sweden 9 2.0% Germany 6 1.2% Source: Compiled by the Kyushu Bureau of Economy, Tra Industry based on Ministry of Finance trade statistics. 30 France 4 0.7% Exports of office machines to the EU totaled 49.1 billion in 2014 Netherlands % 3 0.6% UK Germany Other % 0.9% 1.0% Exports of visual apparatus to the EU totaled 44.2 billion in 2014 Netherlands % Germany 20 10% Austria 2 3% Germany 23 28% Italy 9 4% UK 3 4% UK 5 2% Spain 6 3% Hungary 2 2% 4 2% Imports of power generating machine to Kyushu totaled 20.4 billion in % Imports of parts of motor vehicles to Kyushu totaled 8.0 bi lion in 2014 France % Spain 47 59% Spain 53 48% France 7 10% Netherlands 13 18% Imports of iquefied natural gas to Kyushu totaled 11.2 billion in % Imports of organic chemicals to Kyushu totaled 7.3 billion in 2014 Belgium 16 22% Belgium 59 52% Germany 29 39%

34 Trade Trends between Kyushu and Australia In 2014, exports from Kyushu to Australia totaled 86.2 billion, an increase of 4.7% year-on-year. This was the first increase in two years. Meanwhile imports from Australia to Kyushu came to billion, a decline of 0.5%. This was the first decline in two years. Export values starting from the highest were as follows: rubber tires and tubes, motor vehicles, and rails and railway materials. Import values starting from the highest were as follows: coal, iron ore and concentrates, and petroleum gas. Change in value of trade between Kyushu and Australia Main export and import items in trade between Kyushu and Australia Export items Export value Rubber tires and tubes 296 Motor vehicles 193 Rails and railway materials 83 Visual apparatus 64 Cement 48 Heating or cooling machine 26 Cycles with engines 25 Automotive electrical good 24 Construction machines 23 Flat-rolled products Import items Import value Coal 2,421 Iron ore and concentrates 1,915 Petroleum gas (liquefied natural gas, etc.) 1,388 Ore of nonferrous 935 Barley, unmilled 111 Feeding-stuff for animals 76 Wheat and mesrin 35 Aluminum and aluminum alloys 22 Source: Compiled by the Kyushu Bureau of Economy, Trade and 141 Industry based on Ministry of Finance trade statistics. 31

35 Trade Trends by Industry -1 (Motor vehicles) In 2014, the export of motor vehicles from Kyushu totaled trillion, a growth of 4.5% year-on-year. In addition to being a record high level, this was the first time in two years motor vehicles export from the region rose, and the third consecutive year that motor vehicles exports topped the 1 trillion mark. The majority of motor vehicles export went to China, followed by the US and the United Arab Emirates. (Hundred million yen) Change in value of motor vehicles exported from Kyushu 12,000 10,000 8,000 6,000 Versus nationwide total (%) 18% 15% 12% 9% countries/regions to which motor vehicles are exported from Kyushu hundred million yen,% 2014 Value % of total China 3, % US 2, % United Arab Emirates 1, % Mexico % T aiwan % 3, % T otal 10, % 4,000 6% (10,000 units, %) 2, Export value 5,277 9,874 9,888 10,196 10,056 10,513 % of national exports 7.9% 10.8% 12.1% 11.1% 9.7% 9.6% Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics and data from the Organisation Internationale des Constructeurs d'automobiles homepage 3% 0% Global motor vehicles production volume Canada, 239, 2.7% Spain, 240, 2.7% Brazil, 315, 3.5% Mexico, 337, 3.7% 1, % India, 384, South Korea, 4.3% 452, Germany, 5.0% 591, 6.6% Global motor vehicles production volume was million units in 2014 Japan, 977, 10.9% China, 2,372, 26.4% US, 1,166, 13.0% 32

36 Trade Trends by Industry -2 (Parts of motor vehicles) In 2014, the export of parts of motor vehicles from Kyushu totaled 45.2 billion, a growth of 0.4% year-on-year. Imports of parts of motor vehicles to Kyushu totaled billion, an increase of 22.5%, which was a substantial growth from the previous year. Exports and imports were both at an all-time high. The largest importer to Kyushu of parts of motor vehicles was China, followed by South Korea and Thailand.. The export of parts of motor vehicles was brisk to ASEAN but weak to Russia. Parts of motor vehicles imports rose substantially yearon-year owing to an increase in shipments from China. Change in value of trade by Kyushu of parts of motor vehicles Main countries and regions to which parts of motor vehicles are exported from s Main countries and regions to which parts of motor vehicles are imported into Kyushu Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics. s 33

37 Trade Trends by Industry -3 (Semiconductors etc.) In 2014, exports of semiconductors etc., from Kyushu totaled billion, a growth of 19.1% year-on-year. Imports of semiconductors etc., to Kyushu totaled billion, an increase of 36.5%. South Korea was the largest importer followed by China and Hong Kong. In contrast with a year earlier, both imports and exports of semiconductors etc., grew. The largest importer from Kyushu of semiconductors etc.,was China, followed by Taiwan and South Korea. Exports of semiconductors etc., to Hong Kong grew considerably. In addition, these exports were also brisk to ASEAN countries. However, exports to China were weak. Imports of semiconductors etc., from China and Taiwan increased sharply but those from South Korea declined. Change in value of trade by Kyushu of semiconductors, etc. Versus nationwide total (%) Main countries and regions to which semiconductors, etc. are exported from Kyushu s Main countries and regions to which semiconductors, etc. are imported into Kyushu Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics. s 34

38 Trade Trends by Industry -4 (Iron and steel products) In 2014, iron and steel products exports from Kyushu totaled billion, a growth of 0.7% year-on-year. Iron and steel products imports to Kyushu totaled 97.9 billion, an increase of 22.4%. In contrast with a year earlier, both iron and steel products imports and exports rose. The largest importer of iron and steel products from Kyushu was Thailand, followed by South Korea and China. The largest steel importer to Kyushu was South Korea, followed by China and South Africa. Iron and steel products exports to Thailand, the US, and Mexico were brisk but those to South Korea and China were weak. Iron and steel products imports increased from South Korea, China, and Kazakhstan. Change in value of trade by Kyusyu of Iron and steel products Main countries and regions to which iron and steel products are exported from Kyushu or from which the products are imported into Kyushu Kyushu Export Hundred million yen,% Import Value % of total Value % of total Kyushu Thailand % South Korea % South Korea % China % China % R of South Africa % US % Kazakhstan % Mexico % Russia % 2, % % T otal 5, % T otal % Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics and Japan Iron and Steel Federation materials EU Russia US Reference: Crude minerals Production in major countries One million tons,% % of total % % % Japan % Kyushu % China % South Korea % T aiwan % Brazil % % Global total 1,537 1,559 1,642 1, % 35

39 Trade Trends by Industry -5 (Ships and boats) In 2014, ships and boats exports from Kyushu totaled billion, a decline of 0.1% year-on-year. This was the fourth consecutive year of decline. The largest importer of ships and boats from Kyushu was Panama, followed by the Bahamas and Marshall. Kyushu s ships and boats exports represent 30% of Japan s ships and boats exports. In addition, Kyushu accounts for more than 6.5% of the world s total shipbuilding volume (based on 2013 figures). Accordingly, ships and boats are a major export item for Kyushu. Change in value of ships and boats exported from Kyushu (Hundred million yen) 8,000 6,000 4,000 35% 30% 25% 20% 15% Saudi Arabia % Countries and regions to which ships and boat are exported from Kyushu Hong Kong % % (hundred million yen, %) Japan 2, Export value 6,393 5,731 4,335 4,085 4,081 Share against total ships and boats exports from Japan 28.0% 27.6% 24.4% 27.2% 29.8% Change in ships and boats constructed in major shipbuilding countries 1,000 tons Share 1,000 tons Share 1,000 tons Share 1,000 tons Share 1,000 tons Share 1,000 tons Share 18, % 20, % 19, % 17, % 14, % 13, % Kyushu 5, % 5, % 5, % 4, % 4, % 4, % South Korea 28, % 31, % 35, % 31, % 24, % 22, % China 21, % 36, % 39, % 39, % 25, % 22, % Philippines % 1, % 1, % 2, % 1, % 1, % Rumania % % % % % % Vietnam % % % % % % 5, % 5, % 4, % 3, % 3, % 3, % Global total 77, % 96, % 101, % 95, % 70, % 64, % Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics and materials from the Shipbuilders' Association of Japan and Kyushu District Transport Bureau 10% 5% 0% Liberia % Marshall % Singapore % Kyushu s global ships and boats exports totaled billion in 2014 Bahamas 1, % Panama 1, % Reference: Figures for Kyushu were based on annual results for steel ship shipbuilding 36

40 Trade Trends by Industry -6 (Food: agricultural products, processed foods, etc.) In 2014, foods export from Kyushu totaled 38.3 billion, an increase of 15.7% year-on-year, while foods import to Kyushu totaled billion, a decline of 5.0%. Exports sharply rose from the previous year. Consequently, Kyushu continues to post a sharp trade deficit in this category. The majority of foods export from Kyushu go to Asia and North America. Fish accounts for 50% of foods export. Meanwhile, foods import to Kyushu come from Asia and North America, as well as a variety of other countries including Central and South America, and Oceania. Grains and fish account for a major portion of foods import. Change in value of foods exported from Kyushu Food exports from Kyushu by item s (Hundred million yen, %) Food imports into Kyushu by item s (Hundred million yen, %) Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics. 37

41 Trade Trends by Industry -7 (Agricultural and marine products, and processed foods - I) Sweet potatoes, strawberries, and many other fruits and vegetables are exported from Kyushu to Hong Kong. Germany is the largest imported of green tea from Kyushu. Kyushu exports a large amount of meat of bovine animals to Hong Kong. Other major importers of Kyushu meat of bovine animals are the US and Cambodia. Singapore, 6, 3.4% Taiwan, 1, 0.5% Singapore, 8, 2.6% Malaysia, 6, 1.9%, 19, 14.1% Sweet potato exports from Kyushu totaled 170 million in 2014 Hong Kong, 28, 8.9% Taiwan, 10, 3.4% Singapore, 5, 3.7% China, 5, 3.9% US, 16, 11.6% Green tea exports from Kyushu totaled 135 million in 2014 Germany, 54, 40.0% Hong Kong, 163, 96.1% Unsyu-mikan,fresh exports from Kyushu totaled 311 million in Taiwan, 36, 26.7% Thailand, 4, 1.4% Singapore, 3, 1.0% Taiwan, 1, 0.4% Canada, 259, 83 3% Strawberry exports from Kyushu totaled 288 million in 2014 Singapore, 138, Germany, 5.3% 141, 5.4% Macao, 175, 6.7%, 344, 13.2% Meat of bovine animals exports from Kyushu totaled 2,617 Hong Kong, 684, 26 2% Hong Kong, 280, 97.1% Cambodia, 524, 20.0% US, 610, 23.3% 38

42 Trade Trends by Industry -7 (Agricultural and marine products, and processed foods - II) China is the largest importer of sake and shochu (distilled liquor) from Kyushu. China is also the largest importer of wood in the rough from Kyushu. The majority of yellow tail is exported to the US. Thailand and China are major importers of tuna from Kyushu. Hong Kong, 50, 22.8% Taiwan, 6, 2.6% US, 18, 8.1% Hong Kong, 12, 2 5% Vietnam, 13, 2.7%, 12, 5.7% Sake exports from Kyushu totaled 220 million in 2014, 24, 4 9% South Korea, 51, 23.1% China, 83, 37.8% Taiwan, 1,254, 24.4% South Korea, 959, 18.7% Vietnam, 10, 0.2% Thailand, 2, 0.04% Wood in the rough exports from Kyushu totaled 5,135 million in 2014 China, 2,910, 56.7% UK 1 1.5% Canada 2 1.8% US, 0.5, 4 2% Belgium 1 1.1% Thailand 1 1.1% 3 4.0% Yellow tail exports from Kyushu totaled 8,400 million in 2014, 1, 6.5% US % Taiwan, 39, 7 9% South Korea, 47, 9.6% Thailand, 80, 16.3% Shochu exports from Kyushu totaled 491 million in 2014 China, 276, 56.2% Hong Kong, 1, 4.9% Malaysia, 1, 6.1% China, 2, 21.4% Tuna exports from Kyushu totaled 1,200 million in 2014 Thailand, 7, 57.0% 39

43 Trade Trends by Industry -7 (Agricultural and marine products, and processed foods - III) Fish and fish preparation account for the largest percentage of Kyushu s foods export. In 2014, the export value of these products totaled 20.4 billion, of which fresh items accounts for 19.4 billion and prepared items made up 1.0 billion. The US is the largest importer of fish (fresh) from Kyushu, followed by South Korea and Vietnam. Meanwhile, the largest importer of fish preparation was Hong Kong, followed by Canada and South Korea. Change in value of export by Kyushu of fish and fish preparation Countries/regions importing fish (fresh) from Kyushu China % Thailand % Vietnam % % Total fish (fresh) exports from Kyushu totaled 19.4 billion in 2014 South Korea % US % US % Taiwan % % Countries/regions that export fish and fish preparation to Kyushu Singapore % Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics, and the 2013 seafood production by the Ministry of Agriculture, Forestry and Fisheries South Korea % Fish and fish preparation exported by Kyushu totaled 1.0 billion in 2014 Canada % Hong Kong % 40

44 Trade Trends by Industry -8 (Mineral fuels - I) Since the 2011 Great East Japan Earthquake, domestic demand has been on the rise for mineral fuels for use fuel in thermal power generators. In recent years, Kyushu s import value of mineral fuels has been increasing, and in tandem with this, the trade deficit has been widening. In 2014, import values decreased for coal, coke and briquettes, and petroleum, their products, which slightly trimmed back the trade deficit. Meanwhile, the export of gas, natural & manufactured has increased owing to soaring import prices in North America for LNG. Change in value of mineral fuels Change in value of mineral fuels imported into Kyushu Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics. 41

45 Trade Trends by Industry -8 (Mineral fuels - II) In recent years, the import value of mineral fuels has been increasing owing to an increase in import volume and the rising import unit price, mainly reflecting the rise in crude oil and LNG market prices and continued weakness in the yen s value. (However, in 2014, import volume declined slightly. Coal: down 3%; crude oil, etc.: down 8%; LNG: down 2%) In contrast with the rest of Japan, mineral fuels accounts for a higher percentage of Kyushu s overall import value. In light of this, the import value of mineral fuels is having a larger impact on Kyushu s trade balance. Change in import prices of main mineral fuels imported into Kyushu Change in volume of main mineral fuels imported into Kyushu 40,000 35,000 Coal (1,000MT) Petroleum (1,000KL) LNG (1,000MT) Coal, petroleum, and LNG imports all declined in ,000 25,000 20,000 15,000 10,000 5, Reference: The import unit price for each year is the total import volume divided by the total import price for the respective year. Share of value of mineral fuel imports against overall imports for Kyushu and Japan Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics. 42

46 Opening feature: Global Expansion by Kyushu Companies We implemented interviews to survey the activities of companies in Kyushu planning to expand globally in various fields. Based on these interviews, we summarized the characteristics of companies for various successful cases. Case 1: Yellow Sea Rim Economic Block/Technology Exchanges First prize Case 2: Aim to expand globally with comprehensive entertainment Case 3: Aim to develop living (lifestyle) where humans and nature can safely exist in harmony together Case 4: Globally deliver traditional tastes that blend nature s bounty with human techniques Case 5: Communicate the appeal of Kyushu s agricultural gifts to the world Case 6: Design mechanisms that will put a smile on everyone s face Case 7: Enter market in China by forming ties with local companies Case 8: Deliver products globally that will contribute to enjoyable and delicious meals Various messages: While Japan s economy is contracting, the ASEAN economy is growing. This opens the path for entry into overseas markets. Companies should take advantage of this opportunity even if it means having to take some risks. The designation of washoku (Japanese cuisine) as a UNESCO Intangible Cultural Heritage should not be taken as a one-time fad. The private and public sectors should work together to ensure that Japanese food becomes a permanent facet in global food culture. Utilize a company s own experiences and network to not only promote proprietary products but also to deliver good quality products and services produced by local SMEs. In addition, provide support to SMEs to aid their entry into overseas markets. Value the ties (connections) between people. Build various networks that will contribute to future business opportunities. 43

47 Topics 1: Comparison of trade trand value between Kyushu and other regions In 2014, Kyushu ran a trade deficit in contrast with other regions. The Kinki region posted a record high for scientific, optical instrument exports, and a record high for gas, natural & manufactured, and petroleum imports. In the Chugoku region, organic chemicals exports declined but motor vehicles exports increased. Meanwhile, gas, natural & manufactured imports increased, although petroleum imports declined. In the Shikoku region, iron and steel products exports increased but ships and boats exports decreased. Meanwhile, metal ores & scrap imports increased but petroleum imports declined. Export and import value comparison (2014) Trillion yen % of nationwide % of nationwide Trade Export value Import value Total trade total total balance Nationwide % % Kyushu % % Kinki % % Chugoku % % Shikoku % % Change in major import/export items (2014) Export Value (hundred Growth (%) million yen) Kinki Scientific, optical inst 8, Semiconductors etc 17, Power generating machine 4, Glass and glassware 1, Chugoku Parts of motor vehicles 1, Plastic materials 2, Motor vehicles 14, Iron and steel products 8, Metal working machinery Synthetic rubber Organic chemicals 5, Ships and boats 3, Shikoku Iron and steel products Textile yarn, fabrics Agricultural machinery Plastic materials Petroleum products Textile machines Ships and boats 3, Organic chemicals 1, Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics, trade summary results for the Kinki region in 2014 (Osaka customs), trade summary results for the Chugoku region in 2014 (Kobe customs), and trade summary results for the Shikoku region in 2014 Imports Value (hundred Growth (%) million yen) Kinki Gas, natural & manufactured 15, Petroleum 18, Office machines 3, T obacco 1, Chugoku Iron and steel products 1, Gas, natural & manufactured 3, Petroleum products 4, Metalliferous ores & scrap 9, Petroleum 17, Cereals, cereal preparation Insulated wire and cable Coal 3, Shikoku Semiconductors etc times Manufactures of metals Metalliferous ores & scrap 3, Wood & cork manufactured Petroleum 3, Petroleum products Clothing and accessories Coal 1,

48 Topics 2: Trade trends for semiconductors etc In 2014, Kyushu imported billion in photocells and other related products, a sharp growth of 38% year-on-year. A high amount of imports were from China, followed by Taiwan and South Korea. Shipment volume for Japanese solar cell modules also increased in Kyushu exported billion in semiconductors etc., in 2014, a growth of 19.1% year-on-year. In particular, the export of IC accounted for 89.7% of the semiconductors etc., which were shipped. According to the semiconductor market forecast in the autumn of 2014 and global semiconductor market statistics, the scale of global semiconductor market grew in The domestic semiconductor market also grew owing to brisk exports, reflecting a weak yen, and recovery in domestic demand. In particular, demand for IC increased (smartphones, car electronics, and consumer electronics). Import of photocells and related products in (Kyushu) (Hundred million yen) Countries/regions to which Kyushu exports ICs (2014) (Hundred million yen, %) Countries/regions importing photocells from Kyushu (2014) Breakdown of semiconductors etc exports Hundred million y en Semiconductors etc. 5,989 (Receiving thermonic vulves) 0.01 (T ransistors and diodes) 310 (IC) 5,373 Taiwan % Vietnam % 1, % IC exports from Kyushu totaled billion in 2014 China % South Korea 1, % Hong Kong % Ph lippines % Malaysia % Taiwan % South Korea % Singapore % Photocell imports to Kyushu totaled billion in % China 1, % (Hundred million yen, %) Volume (million) Kyushu and Nationwide IC production trends Hundred billion yen 45,000 4,000 40,000 3,500 35,000 3,000 30,000 2,500 25,000 20,000 2,000 15,000 1,500 10,000 1,000 5, Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on the Ministry of Finance s trade statistics and data from the Japan Photovoltaic Energy Association Nationwide production Kyushu production Value of nationwide production Value of Kyushu production Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics; Profile of Kyushu 45

49 Topics 3: Technology Trade In 2013, Japan took in trillion from technology exports, an increase of 24.8% from the previous year. In contrast, payment for technology imports totaled billion, a growth of 28.8%. Consequently, the trade surplus for technology trade totaled trillion. Japan mainly exports technology to the US. This is followed by China and Thailand. Meanwhile, the US is also the main source for the importation of technology, followed by Denmark and Germany. Change in value of trade by Japan s technology Technology trade by major countries: ,000 35,000 30,000 25,000 20,000 15,000 10,000 5, ,122 17,694 9,484 5,638 5,676 20,283 12,018 23,782 13,246 24,823 16,728 7,037 7,054 7,105 22,255 17,718 6,000 20,153 16,255 24,366 14,804 5,349 5,301 23,852 19,065 27,210 19,704 4,148 4,486 33,952 22, ,777 28,174 Technology export Technology import Balance for technology trade Hundred million yen Technology export 33,952 1 US 12,963 2 China 5,076 3 T hailand 3,087 4 UK 1,867 5 Indonesia 1,312 6 South Korea 1,141 7 India 1,022 7,484 Technology import 5,777 1 US 4,206 2 Denmark Germany Switzerland UK Sweden France Source: Summary of results for 2014 chemical technology research survey by the Ministry of Internal Affairs and Communications 46

50 Topics 4: Asian Degree (2) In 2014, Kyushu s exposure in Asia was calculated by dividing the total economic activities by the ratio of economic activities carried out in Asia. Kyushu s exposure in Asian markets is higher than the nationwide totals in five categories, with the exception of import value. This is exhibits the strong link between Kyushu s economy and Asian markets. As new indicators to measure exposure in Asia, there are six categories: number of international students, countries where Japanese students select to study aboard, number of foreign companies, number of exchange agreements between universities (public), export value (top five nations), and import value (top five nations). With the exception of the number of foreign companies, Kyushu ranked higher than the nationwide totals in the remaining five categories. Comparison between Kyushu and Japan s national average in the Asian-degree Kyushu (2014) Nationwide (2014) Item Unit Asia world Asian degree Asia world Asian degree International students people 16,795 17, % 127, , % Destination of Japanese students studying abroad people 2,227 5, % 13,492 45, % No. of foreign companies companies % 488 3, % University exchanges (no. of agreements)(public) Total exports by country (top five countries) Total imports by country (top five countries) companies % 4,673 8, % % 25,468 32, % 271, , % % 14,698 32, % 191, , % Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics; Moji customhouse data; Japan Student Services Organization; 2014 foreign market entry by local Kyushu and Yamaguchi companies, Kyushu Economic Research Center; Ministry of Education, Culture, Sports, Science and Technology s survey on agreements between Japanese and foreign universities and foreign sites 47

51 Topics 5: Trade trends with TPP and APEC members In 2014, exports from Kyushu totaled 5,771.9 billion, of which exports to APEC member nations totaled 4,345.8 billion or 75.3%. The total for exports to TPP member nations was 1,395.1 billion, or 24.2% of total exports. Exports of motor vehicles, a major industry in Kyushu, totaled 1,051.3 billion, of which exports to APEC member nations totaled billion, which was 69.7% of total motor vehicles exports. The total for motor vehicles exports to TPP member nations was billion, or 33.9% of total exports. Semiconductor exports from Kyushu totaled billion, of which exports to APEC member nations totaled billion, which was 93% of total semiconductor exports. The total for semiconductor exports to TPP member nations was billion, or 22% of total exports nationwide trade values Hundred million yen APEC member nations Exports Imports Trade value Australia 15,012 50,897 65,909 Brunei 113 4,244 4,357 Canada 8,458 11,900 20,357 Chile 1,810 8,612 10,422 China 133, , ,579 Hong Kong 40,393 1,765 42,159 Indonesia 15,605 27,156 42,760 South Korea 54,559 35,313 89,873 Malaysia 14,967 30,867 45,833 Mexico 11,262 4,525 15,787 New Zealand 2,509 2,910 5,419 Papua New Guinea 190 2,611 2,801 Peru 792 1,860 2,651 Philippines 10,461 10,763 21,224 Russia 9,719 26,185 35,904 Singapore 22,252 8,339 30,591 T aiwan 42,316 25,676 67,992 T hailand 33,198 22,995 56,193 US 136,493 75, ,919 Vietnam 12,528 16,307 28,835 Total 566, ,118 1,126,568 TPP member nations Exports Imports Trade value Australia 15,012 50,897 65,909 Brunei 113 4,244 4,357 Canada 8,458 11,900 20,357 Chile 1,810 8,612 10,422 Malaysia 14,967 30,867 45,833 Mexico 11,262 4,525 15,787 New Zealand 2,509 2,910 5,419 Peru 792 1,860 2,651 Singapore 22,252 8,339 30,591 US 136,493 75, ,919 Vietnam 12,528 16,307 28,835 Total 226, , ,083 Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics 2014 Kyushu motor vehicles exports Hundred million yen APEC member nations Export value TPP member nations Export value Australia 193 Australia 193 Brunei 7 Brunei 7 Canada 119 Canada 119 Chile 59 Chile 59 China 3,048 Malaysia 46 Hong Kong 69 Mexico 438 Indonesia 39 New Zealand 35 South Korea 182 Peru 41 Malaysia 46 Singapore 65 Mexico 438 US 2,566 New Zealand 35 Vietnam 0 3 Papua New Guinea 0.1 Total 3,569 Peru 41 Philippines 34 Russia 20 Singapore 65 T aiwan 364 T hailand 8 US 2,566 Vietnam 0.3 Total 7, Kyushu semiconductor export value Hundred million yen APEC member nations Export value TPP member nations Export value Australia 0.3 Australia 0 3 Brunei 0 Brunei 0 Canada 1 Canada 1 Chile 0 Chile 0 China 1,043 Malaysia 233 Hong Kong 1,032 Mexico 0 3 Indonesia 22 New Zealand 0.1 South Korea 1,365 Peru 0 Malaysia 233 Singapore 342 Mexico 0.3 US 202 New Zealand 0.1 Vietnam 540 Papua New Guinea 0 Total 1,319 Peru 0 Philippines 63 Russia 0 Singapore 342 T aiwan 470 T hailand 252 US 202 Vietnam 540 Total 5,567 48

52 Topics 6: Japan and ASEAN Relations Trade between Japan and ASEAN nations have been on the rise. In the past ten years, exports from Japan to the region have increased by 1.4- fold and imports from the region have expanded 1.7-fold. In 2014, the total trade between Japan and the ASEAN market was 23.3 trillion. The trade trends between Kyushu and the ASEAN region was similar to nationwide trends. In the past ten years, exports from Kyushu to the region have increased by 1.3-fold and imports from the region have expanded 1.8-fold. In 2014, the total trade between Kyushu and the ASEAN market was 1.8 trillion. Direct foreign investment by Japan (in major countries/regions in East Asia) Change in value of trade between Kyushu and ASEAN Change in value of trade between Japan and ASEAN Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics Compiled by the Kyushu Bureau of Economy, Trade and Industry based on Ministry of Finance trade statistics and data from the international balance (breakdown of direct foreign investments by Japan) 49

53 Topic 7: Tourism In 2014, 13,413,000 foreigners visited Japan (of which 1,477,000 visited Kyushu). This was an increase of 29% year-on-year and the second consecutive year the number of visitors to Japan topped the 10 million mark. Tourists from Taiwan were the most prevalent visitors to Japan, with 2,829,000 Taiwanese coming to Japan in 2014 (212,000 to Kyushu). This was followed by tourists from South Korea (2,755,000 visitors nationwide and 856,000 to Kyushu). Japan ranks 22nd worldwide in the number of foreign visitors per year. The number of duty free shops in Japan increased sharply in 2014 to 18,779 (up 225% from a year earlier). In Kyushu, the number of duty free shops totaled 1,693, an increase of 3.6-fold. This accounts for 9% of total duty free shops in Japan. Foreign visitors to Japan in 2014 (wolrd); Global tourist population Million people % Foreign visitors to Japan , Worldwide 1,138.0 Number of duty free shops (top 20 in 2014) Source: Compiled by the Kyushu Bureau of Economy, Trade and Industry based on JNTO and UNWTO data Number of foreign tourists by destination (top 40 in 2014) 1,000 people Compiled by Compiled by the Kyushu Bureau of Economy, Trade and Industry based on JNTO and UNWTO data 50