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Japanese companies face roadblocks when exiting China

Labor issues and social media require a soft touch when closing shop

Sony faced an employee strike in 2016 when it announced it was pulling out of its Guangzhou plant. (Photo by Yu Nakamura)

TOKYO -- A growing number of Japanese companies are looking to exit China -- either fully or partially -- as the pandemic, a simmering Sino-U.S. trade war and rising labor costs create a murky future.

But pulling the plug on a business in China can be complicated and fraught with risks, especially regarding labor, according to legal experts.

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