The impact on the Chinese economy from the earthquake and tsunami which struck Japan is expected to be limited, reports yicai.com, citing China International Capital Corporation (CICC).

According to CICC, the positive impact on Chinese exports from the rebuilding is likely to offset the negative impact of reduced demand due to the economic fallout of the crisis.

Exports to Japan currently account for 7.7 percent of China's total exports.

CICC said that in the short run, the disruption of the supply chain of electronic products in East Asia could impact exports of China's processing trade.

China's processing trade relies on imported components, of which approximately 20 percent come from Japan . It is not clear the extent to which the component suppliers were affected by the disaster.

CICC added that the fall in international oil and iron ore prices as a result of the production stoppage in Japan will help China to reduce the risk of imported inflation.

Shares of Suning Appliance (002024), which has a subsidiary in Japan , fell 2.77 percent to close at 13.71 yuan per share today. 

Source: CapitalVue