On Nov. 26, the Japan Bank for International Cooperation (JBIC) announced the findings of the survey it took of the domestic manufacturing sector on the impact of a continued pursuit of protectionist policies by countries around the world.
The survey results revealed that many companies are concerned about the prolongation of trade friction between the United States and China. Some 33.9% of respondents (186 companies) anticipated a “drop in revenues” in the future [under such a scenario].
Some 24.6% of respondents (135 companies) said continued protectionism would have “no impact” on their income, while only 1.8% (10 companies) expected an “increase in revenues.” The remaining companies said they “don’t know” what kind of impact will result.
By industry, some 56.0% of companies in the “nonferrous metals industry,” which includes many companies that manufacture goods for the automotive industry, and 50.9% of respondents in the “automotive sector” anticipated a decline in revenues.
Asked why they project a decline in income, many cited “the rise in costs associated with the additional tariffs on manufactured goods” and “the curbing of capital investment by trading partners who export to the United States and China.” Other respondents cited concerns about an economic slowdown in China.
Asked about the impact on trade transactions, 30.5% of respondents (167 companies) said continued protectionism would have “no impact,” while 28.5% (156 companies) anticipated a “decrease.” Only 1.8% (10 companies) said transactions would “increase.”
The survey was taken from the end of June though the end of September of 1,012 companies [in the manufacturing sector]. Responses were received from 605 companies.