Japan is a massive exporter, while the US is a massive net importer. American industrial production depends heavily on global supply chains, and thus, american prosperity requires a healthy global demand of US dollars.
Absolutely no, Japan imports far more than they export.
>Total exports reached 100.88 trillion yen ($680 billion) last year, up 2.8% from 2022.
>Total imports stood at 110.17 trillion yen last year, down 7%, due to lower oil and gas prices, resulting in an annual trade deficit of 9.29 trillion yen. The deficit declined from 20 trillion yen in 2022.
> american prosperity requires a healthy global demand of US dollars
The supply chains create the international demand for dollars and dollar-denominated assets. That then reinforces the supply chains. But causation starts with America being a massive producer and consumer.
We're the second-largest exporter in the world [1]. (But yes, more consumer.)
> And no, the biggest driver for the US Dollars demand nowadays it is status as the global currency of trade
Who do you think does most of the trading? If America weren't the world's largest importer and second-largest exporter, the dollar wouldn't be the global currency of trade.
You're correct that our financial system reinforces that relationship. But it's reinforcing, not underwriting. (China isn't challenging us in our financial services, it's challenging us on trade.)
