Japan's exports to China fell in the first six months of the year as companies shifted production elsewhere to avoid trade tariffs. About 20 percent of Japan's exports go to China.
Finance Ministry statistics show China-bound shipments in January-to-June fell 8 percent to about 66 billion dollars from the same period last year. Exports to China in July also dropped by 9 percent on year to 12 billion dollars.
Japanese companies make a lot of products in China for the US market. But with Beijing and Washington slapping tariffs on each other's imports, Japanese firms are moving elsewhere.
Precision equipment maker Ricoh says it shifted production of US-bound products to Thailand from China.
Ricoh officials say output in Thailand has increased by about 10 percent. The company still makes products for Japanese and European markets in China.
Mitsubishi Electric and Daikin Industries are two other companies following a similar strategy. Mitsubishi moved some manufacturing of semiconductors and machinery for US customers to Japan from China.
Daikin replaced China with Thailand as the production base for compressors used in air conditioners.