Taiwanese media outlet Feng Media published an article on the 28th titled "Japanese Companies Make Mass Exodus from China! Nearly 3,000 Disappear in 2 Years."

The article reported that, according to a report announced by Teikoku Databank on September 28, the number of Japanese companies with bases such as local subsidiaries, factories, and representative offices in China as of June 2026 was 10,118, a decrease of 2,916 companies, or 22.4%, from 2024. Compared to the peak of 14,394 companies in 2012, it has decreased by nearly 30% and is the lowest since statistics began in 2010.

Furthermore, the number of Japanese companies that entered China from 2024 to 2026 remained at 1,221, which is lower than the 2020-2022 period (1,352 companies) when COVID-19 was spreading, marking the lowest number. In the same period, companies designated as "withdrawn or whereabouts unknown" due to reasons such as closure of bases reached 4,137 companies, which was also the highest number ever.

The article pointed to the deterioration of Japan-China relations, triggered by then-Prime Minister Sanae Takaichi's "Taiwan contingency" remarks in November last year, as a background to the mass withdrawal. Other factors cited include rising labor costs in China, concerns about the revised "Anti-Espionage Law," China's real estate slump, and low-price competition from government-supported local companies. Some companies have begun to move their production bases from China to Southeast Asian countries such as Vietnam, or back to Japan.

Furthermore, it noted that in Shanghai, where many Japanese companies have expanded, 1,085 companies, or about 20% of the total, decreased over two years, a reduction of about 30% compared to 2022. In Beijing, the number has nearly halved since 2022, with only 555 companies currently remaining. The article conveyed Teikoku Databank's assessment that "while businesses will continue to operate with risks in the short term, in the medium to long term, in order to reduce dependence on the Chinese market, there is a possibility that withdrawals from China due to the consolidation or closure of local subsidiaries will further increase." (Translation/Editing: Kitada)