Japanese residents in China hit 20-year low as companies shift away

Rising wages, political challenges dampen enthusiasm for Chinese market

20250203N Japanese in China

The Japanese population of Dalian has fallen by half over a decade amid such factors as rising wages and COVID-19. (Photo by Kohei Fujimura)

KOHEI FUJIMURA

DALIAN, China -- The number of Japanese residents in China sank below 100,000 for the first time in 20 years in 2024 as rising wages and political risks impact how Japanese corporations operate in the country.

There were 97,538 Japanese nationals who were staying in China for three or more months as of Oct. 1, according to recent data from Japan's Ministry of Foreign Affairs. The figure fell 4%, marking the 12th straight annual drop, and made China home to the third-largest overseas Japanese community, behind the U.S. and Australia.

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