A commercial street in Sapporo city, Hokkaido, Japan Photo: VCG

Japan's trade with the Chinese mainland posted double-digit growth in the first half of 2026, highlighting a reality the Takaichi administration can ill afford to ignore: even as Tokyo's erroneous political approach strains bilateral ties, Japanese companies continue to bet on China's growing market and supply-chain strengths.

The figures reveal a growing divide between the Japanese government's China policy and the needs of its business community, analysts said, urging Tokyo to correct its erroneous political approach and safeguard conditions for mutually beneficial economic cooperation.

Japan's exports to the Chinese mainland rose 14.3 percent year-on-year to 10.22 trillion yen ($64.8 billion) in the first six months, while imports from the mainland climbed 15.7 percent to 14.87 trillion yen, according to preliminary data released by Japan's Ministry of Finance on Wednesday.

Japan's trade deficit with the Chinese mainland widened 18.9 percent to 4.64 trillion yen. The mainland accounted for nearly 17 percent of Japan's total exports and about 24 percent of its imports during the period, calculations based on the ministry's figures showed.

Overall, Japan's exports and imports to various nations rose in June. An Associated Press report on Wednesday partly attributed the deficit primarily to higher oil import prices and a weaker yen.

"The growth in China-Japan trade shows that bilateral economic ties still have a practical foundation, while also pointing to Japan's increasing reliance on the Chinese market and supply chains," Chen Zilei, director of the Research Center for Japanese Economics at the Shanghai University of International Business and Economics, told the Global Times on Wednesday.

The growth in Japan's imports from China reflects the increasing competitiveness of Chinese manufacturing and supply chains, as well as Japan's growing dependence on Chinese goods and intermediate inputs, Chen said. "Meanwhile, the export figures underscore Japanese producers' continued need for the Chinese market, whose scale and dynamism few others can match."

The growth comes as Japanese business groups continue to seek dialogue and engagement with China, despite mounting costs from strained bilateral ties.

Last year, Japanese Prime Minister Sanae Takaichi made erroneous remarks on the Taiwan question. Her remarks, compounded by Japan's increasingly provocative moves in the military and security fields, have pushed China-Japan relations into one of their most difficult periods in decades.

According to an email the Kansai Economic Federation sent to the Global Times on July 15, it was planning to send a business delegation to Beijing and other Chinese cities from October 18 to 23, although the visit is still awaiting confirmation from the Chinese side.

"The purpose of the visit is to reaffirm the strong ties between the Kansai business community and China and to create an opportunity to further develop bilateral relations going forward," read the email. 

The Japan-China Trade Promotion Association, a key channel for Japan-China economic exchanges, is also preparing a delegation visit to China in late September, according to Kyodo News.

"Japanese companies increasingly recognize the importance of remaining engaged with China, as the upgrading of its industrial and supply chains gives them access not only to expanding domestic demand, but also to manufacturing networks, innovation capabilities and global market opportunities that are difficult to replicate elsewhere," Chen said.

The number of Japanese business locations in China has risen by more than 1,000 from 2025 to 32,364, accounting for over 40 percent of the roughly 70,000 operated by Japanese companies worldwide, according to a 2026 white paper released by the Japanese Chamber of Commerce and Industry in China.

A total of 10 Japanese business chambers attended the 4th China International Supply Chain Expo (CISCE) in Beijing in July, the Global Times learned.

Chen said that whether these firms can fully seize those opportunities will depend on whether the Japanese government and business community confront the root causes of the deterioration in bilateral relations. "China-Japan economic cooperation can return to a stable footing only if Tokyo corrects its misguided approach toward China."

The root cause of the serious difficulties in bilateral relations lies in the Japanese authorities' erroneous remarks and actions on Taiwan and in the military and security fields, Chinese Foreign Ministry spokesperson Guo Jiakun said on July 1, when asked whether China was willing to strengthen economic and trade ties with Japan.

China remains committed to mutually beneficial economic and trade cooperation with countries worldwide, allowing all sides to share in its development opportunities, He Yadong, spokesperson for the Ministry of Commerce said in late June.

"We hope the Japanese business community will act in its own interests by urging the Japanese government to reflect on and correct its mistakes, creating the conditions for bilateral economic and trade cooperation to return to a sound track," the spokesperson said.