For the first time since WWII, Japan''s biggest trade partner is no longer the US.

In the year ended on 31 March, 2007, China has overtaken the US as Japan''s largest trading partner with tradeing volumes reaching ¥25.43 trillion yen or $215 billion. Japan''s trade with the US in the same period was ¥25.16 yen.

According to the Japanese finance ministry, Japan, whose trade surplus is now at a record high, widened to 74 per cent from a year earlier at ¥1.633 trillion last month, exceeding the expectations of ¥1.36 trillion.

The Japanese finance ministry attributes the trade between the two Asian giants to several Japanese firms shifting their manufacturing work to China, which has lower labour costs, and also offers them a fast-growing market.

A weaker yen and exports to China have also boosted Japan''s trade surplus.