Japanese Firms in China Drop 22% to 10,118, Lowest Since 2010

The number of Japanese companies operating in China fell 22% year-on-year to 10,118, the lowest since 2010, reflecting ongoing supply-chain diversification away from China toward other Asian markets. This continues a multi-year trend of corporate de-risking, though the magnitude of the decline suggests accelerated relocation. The shift underscores structural changes in regional trade and investment flows, with implications for China's FDI and Japan's supply-chain resilience.