Japanese Companies in China Fall to Lowest Level Since 2010

The number of Japanese companies operating in China has fallen to 10,118, its lowest level since 2010, as businesses seek to diversify supply chains and reduce their reliance on the country.

The total represents a 22% decline compared with 2024, marking a substantial contraction in the Japanese corporate presence in China.

The drop comes amid a shift toward other Asian markets as Japanese businesses look to spread their operations across a broader range of locations rather than concentrate them in China.

The trend points to a changing role for China within Japanese companies’ regional strategies. Diversification, rather than dependence on a single market, is becoming a greater priority in supply-chain planning.