According to a Teikoku Databank survey, the number of Japanese companies operating in China stood at 10,118 as of June 2026, down 22.4% from the previous survey in 2024. The figure was down 29.7% from 2012, marking the lowest level on record.
According to the “Survey of Trends in Japanese Companies Operating in China (2026)” released by Teikoku Databank, the number of Japanese companies operating in China stood at 10,118 as of June 2026, down from 13,034 in the previous survey conducted in 2024. Compared with 14,394 companies in 2012, the number operating in China was down 29.7%.
The background is said to include “China risk,” such as the property downturn, restrictions on rare-earth exports and the revised Anti-Espionage Law. These factors are viewed as impeding expansion into China and prompting companies to consider withdrawing. The survey also noted that the proportion of small and medium-sized companies has declined, while the proportion of mid-sized and large companies has increased.
By region, Shanghai has the largest number of companies, followed by Jiangsu and Guangdong, while the northeastern province of Liaoning and Beijing have seen declines. By industry, manufacturing accounts for the largest share, followed by wholesale and services. Although there have been no major changes from previous surveys, more companies may come to place greater importance on China as a market for global expansion.
The report expects the number of companies gradually reducing their dependence on China and expanding their businesses with Southeast Asia in mind to increase. As the impact of China risk continues, more companies are expected to consider withdrawing from or scaling back their operations.