As of June 2026, the number of Japanese companies with local subsidiaries and other bases in China stood at 10,118, down 2,916 from 2024 and a new record low. The number of companies that had withdrawn or whose locations could not be confirmed reached 4,137, making this a record year.
According to the latest survey by Teikoku Databank, the number of Japanese companies with bases in China stood at 10,118 as of June 2026, down 2,916 from 2024, representing a decline of 22.4%. The figure was approximately 30% below the 2012 peak and the lowest since statistics began.
Only 1,221 Japanese companies newly entered China during the same period, below the 1,352 recorded in 2020-2022 and the lowest figure on record. Meanwhile, the number of companies that withdrew or whose locations could not be confirmed following the closure of bases and other developments reached 4,137, a record high.
Shanghai lost 1,085 companies over 2 years, a decline of approximately 20%, while Beijing had 555 companies, half the 2022 level. The contraction of bases in coastal areas was pronounced, and the decline of labour-intensive industries was also conspicuous.
Against the backdrop of worsening Japan-China relations, China's property downturn, export restrictions on rare earths and the revised counter-espionage law were cited as risk factors for companies. A policy shift following Prime Minister Sanae Takaichi's responses in the Diet was also viewed as a concern. In addition, the relocation of production bases to Southeast Asia and moves to return production to Japan are accelerating.