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US-China trade war threatens Japan's 'indirect exports'

Value-added shipments to China made up 5% of Japan's 2015 exports

U.S. Trade Representative Robert Lighthizer, left, and Chinese Vice Premier Liu He are leading trade talks between the two countries.   © Reuters

TOKYO -- Companies that form supply chains for Chinese exporters are still waiting to see if they will be spared the impact of higher U.S. tariffs after President Donald Trump said the levies would be put on hold pending further talks.

The trade dispute reverberates far beyond the two combatants. $34.6 billion worth of Japanese goods made their way to the U.S. and other markets via China in 2015, the latest year for which an analysis is possible. That’s about 5% of Japan’s exports for that year.

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