Japan's net external assets were overtaken by China, falling to 3rd place in the world. Singaporean Chinese-language media Lianhe Zaobao reported on the 26th.

Based on data released by the Ministry of Finance on the same day, the article introduced that Japan's net external assets as of the end of 2025 stood at 561.75 trillion yen. While this represents a 4.4% increase year-on-year, Japan was overtaken by China in the country/region ranking, falling from 2nd to 3rd place.

Net external assets refer to a country's external assets minus its external liabilities. The Ministry of Finance explained that "Japan's net external asset balance increased for the 8th consecutive year because the increase in external assets exceeded the increase in external liabilities."

Against the backdrop of expanded overseas direct investment and securities investment by Japanese companies, as well as rising prices of foreign stocks and bonds held by Japanese individual investors, Japan's external asset balance increased by 8.5% year-on-year to 1,805.6342 trillion yen, marking 17 consecutive years of increase.

Meanwhile, influenced by rising prices of Japanese stocks held by overseas investors and the continuous inflow of foreign funds into Japanese assets, the external liability balance increased by 10.5% year-on-year to 1,243.8838 trillion yen, marking 7 consecutive years of increase.

The article quoted Japanese reports, stating, "While Japan's net external assets were ranked 1st at the end of 2023, they were overtaken by Germany at the end of 2024, and now further overtaken by China this time."

Comments from Chinese netizens included: "Japan is increasingly in decline," "This is good. But don't benefit the enemy (Japan) through overseas investment," "The overseas automotive industry (including Japan) is obsolete anyway," "Honestly, these numbers don't mean much," and "The weak yen probably plays a role too." (Translation/Editing by Kitada)