By Dow Jones
Japanese exports to China grew 2. 5% to $78 billion in the first half of 2014 from the same period a year earlier, according to Jetro. That was still down 11. 7% from the first half of 2012, just before tensions flared in September 2012 after Japan nationalized disputed islands in the East China Sea.
Trade between Japan and China is expected to grow this year for the first time in three years, but won't likely reach the level before a territorial dispute erupted in 2012, data showed Tuesday.
The note of cautious optimism comes as Japan's exports to China rose in the first half of the year for the first time in three years, according to data from the government-affiliated Japan External Trade Organization.
Japan's exports to China are still reeling from a 13. 8% plunge in the first half of 2013 following the flare-up of the island dispute and a subsequent nationwide boycott of Japanese goods in China.
Faced with the deteriorating business environment, some Japanese companies started turning away from China, resulting in a 10% drop in the number of long-term Japanese residents there between October 2012 and October 2013.
Read more here: Business Spectator