Japan's trade with China is likely to exceed 190 billion US dollars in 2005, setting a record for the seventh straight year, the Japan External Trade Organization (JETRO) said Monday.

The JETRO said that there will be some uncertainty over Japanese exports to China due to "a slowing in global demand for personal computers and home electric appliances --as well as a lingering inventory adjustment process in consumer durable goods."

However, it pointed out that Japan's exports in finished products for China's domestic market and semi-finished components for Japanese manufacturers operating in China are expected to show steady growth in 2005, and imports of finished products from China are also expected to grow considerably, as Japanese companies continue to shift production operations to China.

China supplanted the United States in 2004 to become Japan's largest trade partner after the trade volume between China (including Hong Kong) and Japan hit record 22,200 billion yen (about 211 billion US dollars), according to the Japanese Finance Ministry.

The trade with the mainland region in 2004 surged by 26.9 percent from the previous year to 168 billion US dollars, according to JETRO, with both imports and exports moving to new levels.

Exports to China grew 29.0 percent, as a result of an increase of parts and materials that Japanese manufacturers in China have difficulty sourcing locally, such as liquid crystal display and other scientific or optical devices, JETRO said.

Meanwhile, exports of construction machinery, telecommunication equipment and autos fell.

Imports from China rose 25.3 percent as Japanese companies continued to shift production operations to China.

Personal computers, audio-visual products and mobile phones were among the notable imports.