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JAPAN INCREASES TRADE AND
INVESTMENT IN ASIA{{/B}} Japan has been the most powerful country in Asia, but it had little trade with the region until now. Now, Japan is doing more trade with Asia than with the rest of the world. In 1985, the US was Japan's main customer; Japan exported a third more to the US than to Asia. Now, Asia buys 30%more than the US and three times as much as Europe. Japanese imports from Asia increased by 150% between 1985 and 1995. Japan's imports amount to $ 60 billion from Asia in 1993, compared to $ 50 billion from the US and $ 24 billion from Europe. In 1994, Japan invested $ 7.7 billion in Asia. During the next few years, 75% of Japan's direct investment will be there. Japanese investment in the region is now $ 64 billion, as against US investment of $ 26 billion, or German investment of $ 7 billion. Thailand expects new Japanese investment to reach $ 8 billion by 1998. Already, Japan controls 90% of Thailand's auto market. Labour costs in Japan are high, so Japanese companies are setting up in countries where workers get paid much less; an increasing number of Japan's employees now live outside Japan. |