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Business trends

Retailers lead gradual Japanese retreat from China

Overall Japan Inc presence shrinks 2% in three years as trade war persists

Japanese variety store chain Loft plans to open its first Chinese outlet inside this Ito-Yokado supermarket in Chengdu, but many other retailers are pulling out of the country.

TOKYO -- The number of Japanese companies operating in China has fallen by about 2% from three years ago, a new survey shows, suggesting the slowing Chinese economy and the Beijing-Washington trade conflict are prompting businesses to re-evaluate their strategies.

As of May this year, 13,685 Japanese companies had a presence in China, down by 249 since 2016, when Tokyo credit research agency Teikoku Databank conducted the last survey of this kind. The 2019 tally was about 5% lower than the peak of 14,394 recorded in 2012.

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