Japanese Companies Quietly Pulling Back From China Over Increased Instability: Insiders

Security fears, political risk, and supply-chain de-risking are reshaping how Japanese companies view China’s manufacturing future.
Japanese Companies Quietly Pulling Back From China Over Increased Instability: Insiders
Workers inspect products at a Japanese laptop factory in Lu'an city, Anhui Province, China. STR/AFP via Getty Images
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Over the past two years, a growing number of Japanese companies have been scaling back their operations in China, relocating production or shutting it down. Analysts and observers say that this trend reflects a strategic reassessment driven by political risk, security concerns, and rising geopolitical tensions.

Observers and industry insiders who spoke to The Epoch Times described the trend as a “Japanese corporate exit from China.” What stands out is not a single dramatic withdrawal but a pattern across industries—from automobiles and electronics to food, retail, and dining—indicating a broader erosion of confidence in China as a long-term manufacturing base.