Of these risks, I remain especially concerned about protectionist moves; in particular, the trade friction between the United States and China. In fact, the deterioration in Chinese firms' sentiment toward business conditions, particularly those related to exports and imports, has been distinct.
Although no significant changes have been evidenced, for example, by Chinese statistics on exports and imports, some have pointed out the possibility that China's trade activity has been buoyed temporarily by the front-loading of exports to the United States prior to a looming rise in tariffs. Thus far, the effects of the U.S.-China trade friction on Japan's economy have been limited.