The number of Japanese citizens residing in China has fallen below 100,000 for the first time in 20 years, Japanese media reported, reflecting rising production costs and worsening geopolitical tensions.
According to data from Japan's Foreign Ministry cited by the Nikkei Asia newspaper, 97,538 Japanese citizens stayed in China for three or more months last year.
The number represents an annual reduction of 4% and the 12th consecutive annual drop. China is now home to the third largest overseas Japanese community, behind the United States and Australia.
Over the past 12 years, the Japanese population has declined by about 60 percent in Beijing and about 50 percent in Dalian, a port city in northeastern China, according to ministry data.
The number of Japanese living in China increased after the neighboring country's accession to the World Trade Organization in 2001. By 2003, China had the second largest overseas Japanese community.
A turning point came in 2012, when Japan nationalized the Senkaku Islands, claimed by China as Diaoyu. The move sparked large-scale protests and a boycott of Japanese products, as well as attacks on Japanese-owned factories.
The closure of China's borders during the COVID-19 pandemic and the arrest of Japanese citizens for espionage are believed to have accelerated the exodus of Japanese citizens.
Last year was also marked by two knife attacks on Japanese children, prompting more Japanese workers in China to choose to leave their families behind.
According to the Nikkei Asia newspaper, some Japanese companies are having difficulty finding workers willing to accept assignments in China, leading those currently in the country to hand over their responsibilities to local employees when they return home.
Japanese companies are also increasingly moving away from China. Rising wages are an important factor, according to the newspaper. In Guangzhou, the average monthly wage for workers in Japanese-run factories rose to $721 (695 euros) in 2023 from $190 (183 euros) in 2005, according to a survey by the Japan External Trade Organization.
In a 2024 report by the Bank of Japan for International Cooperation, Japanese manufacturers ranked China as the sixth most promising market in the medium term — its lowest spot ever.
As jobs in China become less popular, fewer Japanese people are learning Chinese. The number of people taking Chinese language certification exams has fallen by 34 percent since 2012, to around 50,000 in 2023.
In a 2023 opinion poll conducted by Japan's Cabinet Office, a record 87 percent of respondents said they did not have a sense of closeness to China.
