The escalating U.S.-China trade tensions are at the root of Japan's concerns about the global economy, according to a recent report compiled by the Cabinet Office.
But the office maintained its headline assessment of Japan in the August edition of its monthly economic report, saying the world's third-largest economy is "recovering at a moderate pace" with "weakness continuing mainly in exports."
In the short term, the monthly report warned that "attention should be given to the effects of the intensified tension over trade issues on the world economy."