The number of Japanese companies with operations in China fell to 10,118 as of June 2026. This was a decrease of 2,916 from approximately 13,000 in 2024, representing a 22.4% decline. Of the companies that withdrew, 4,137 had unknown whereabouts, a record high. Between 2024 and 2026, 1,221 companies entered China for the first time.
As of June 2026, the number of Japanese companies with operations in China stood at 10,118, a decrease of 2,916 over 2 years. The figures described as "decreasing-detailed" indicate that withdrawals from the Chinese market are accelerating overall.
Compared with 2024, the number of companies with operations declined by approximately 22.4% from around 13,000, with the decline over the past 2 years reaching its worst level on record. The number of companies whose whereabouts were unknown among those that withdrew reached a record high of 4,137.
At the same time, 1,221 companies entered China for the first time between 2024 and 2026. The restructuring of the Chinese market is therefore not simply a uniform movement toward withdrawal, but also includes companies taking a contrarian approach. These moves are accompanied by strategies involving deep integration into local supply chains and deeper localization centered on specific technologies.
Changes in the Chinese market are being driven not only by cost factors and political risk, but also by evaporating demand and price competition from local companies supported by subsidies. Companies are reportedly reassessing their risks and returns.