According to a report by The South China Morning Post on September 29th, latest surveys show that the number of Japanese companies operating in China has decreased by nearly 30% compared to the peak in 2012. The number has decreased by 22% in just the past two years.
A survey and analysis released on Monday by the business credit research firm and commercial information agency Teikoku Databank shows that as of June this year, a total of 10,118 Japanese companies are operating businesses in China, which is the lowest level since 2010.
The investigation also found that since the last survey in 2024, a total of 1,221 Japanese companies have entered the Chinese market. This number is even lower than the total number of new companies during the pandemic period. At the same time, 4,137 companies have withdrawn from China, and it is not possible to determine whether they are still operating in China.
This organization, headquartered in Tokyo, compiled databases of approximately 1.51 million companies, credit reports of about 2 million companies, and public information to arrive at the aforementioned findings.
The survey subjects include the operating conditions of Japanese companies' subsidiaries in China and their related businesses, as well as the establishment of representative offices in China.
The Imperial Data Bank stated that the number of Japanese companies in China reached a peak of 14,394 in 2012. This is the ninth time the institution has conducted such a survey.
In November last year, Japanese Prime Minister Yukie Akamine hinted that Japan might use military force if a conflict occurs across the Taiwan Strait, which caused dissatisfaction in Beijing. As a result, relations between China and Japan deteriorated.
thereafter, Beijing took a series of countermeasures against the remarks made by Koike Sakiko. There was a decrease in direct Chinese-Japanese flights, the number of Chinese tourists visiting Japan, and other commercial exchanges.
Headquarters located in Tokyo, Sasaekawa Heibei Consortium Strategic and Deterrence Project Head, Yamamoto Setsuo, stated: “China will undoubtedly remain the largest and most attractive market globally.”
For a long time, China's vast market and complete supply chain system have been important factors attracting Japanese companies. According to survey agencies, more than 40% of Japanese companies operating in China this year are engaged in manufacturing, accounting for the highest proportion, followed by wholesaling.
The Imperial Data Bank stated that in recent years, Japanese investors have faced issues such as China's restrictions on rare earth exports, as well as price competition with Chinese companies.
This institution states that, coupled with "relations between Japan and China deteriorating", these factors have affected Japanese businesses operating in China.
The Chinese Ministry of Commerce has stated that China adheres to a high level of opening up and is committed to creating a market-oriented, law-based, and internationalized business environment of first-class quality. A stable and healthy Sino-Japanese economic and trade relationship is in the common interest of the people of both countries. We once again urge the Japanese government to seriously reflect on its mistakes and make corrections, so as to create conditions for normal economic and trade cooperation between the two countries.
