Key facts
- Small and midsize Japanese companies are increasingly leaving China.
- Key risks driving this exit include prolonged Sino-American tensions, slowing economic growth, and China's espionage law.
- The total number of Japanese firms operating in China has decreased by approximately 10% since its 2012 peak.
A growing number of small and midsize Japanese companies are withdrawing from China, citing risks such as prolonged Sino-American tensions, slowing economic growth, and the country's espionage law. This trend has resulted in an approximate 10% reduction in the overall tally of Japanese firms operating in China compared to its 2012 peak. Staffing services provider Quick, for example, has exited China and is redirecting resources to strengthen its operations in the U.S. and Europe.