Summary of Results from a Survey of Japanese Firms on New Aspects of Economic Relationships with China: Outsourcing, service trade, data transfer, and uncertainty

Dependence on China has become a serious concern amid the intensified tension between the U.S. and China. It has become difficult, however, to precisely measure the dependence of developed economies solely based on conventional trade statistics. Trade in service, or invisible trade, is a critical missing piece. Cross-border data transfer is another important issue as economies have increasingly digitized. To respond to these needs, we conducted a survey of Japanese mid- or large-sized firms in manufacturing, wholesale, retail and a part of service industries. We collect data on the number of firms outsourcing tasks to China, firms exporting/importing services to/from China, and firms transferring data to/from China. This survey is a preliminary first step toward capturing previously unnoticed and invisible links with China. We also collect data on firms’ expectations of uncertainty related with China’s economic policy.