Japanese companies exit China in record numbers

[huanghong]

It's really interesting. According to the official Japanese data that ChatGPT queried and listed, Japan's investment in China in the first half of 2026 actually showed inflows significantly exceeding outflows. Japanese capital is still flowing into the Chinese market on a large scale.


According to Japan’s Ministry of Finance (MOF) monthly official statistics on overseas direct investment, Japanese direct investment in China during January–June 2026 remained a net inflow, rather than a net outflow.

The figures for mainland China were:

H1 2026
Investment execution (gross investment)
Withdrawal / recovery
Net direct investment

[th]

Amount​

[/th]​

[td]

¥378.1 billion​

[/td]​

[td]

¥156.4 billion​

[/td]​

[td]

+¥221.8 billion​

[/td]​

The monthly figures were:

• January: ¥87.5 billion invested, ¥19.1 billion withdrawn → +¥68.4 billion
• February: ¥35.4 billion invested, ¥16.4 billion withdrawn → +¥19.0 billion
• March: ¥61.2 billion invested, ¥30.6 billion withdrawn → +¥30.7 billion
• April: ¥51.4 billion invested, ¥43.1 billion withdrawn → +¥8.3 billion
• May: ¥59.5 billion invested, ¥25.9 billion withdrawn → +¥33.6 billion
• June: ¥83.1 billion invested, ¥21.3 billion withdrawn → +¥61.8 billion

Thus, for the first half of 2026, Japanese investment executions substantially exceeded withdrawals:

¥378.1 billion − ¥156.4 billion ≈ ¥221.8 billion net investment.

Therefore, it would be inaccurate to describe Japan's overall direct investment position in China during H1 2026 as a net capital withdrawal. Under Japan's balance-of-payments direct-investment statistics, the flow remained positive.

There is an important statistical qualification, however. Japan's “direct investment” statistics are not identical to China's Ministry of Commerce statistics on actual utilized foreign investment (FDI). The two countries use different statistical frameworks and definitions. Japan's balance-of-payments data include components such as equity capital, reinvested earnings, and debt-related investment.

 

[ety]

You didn't answer what % world ReM supply China controls after it was 99% a few years back and your export controls began. I like to know the numbers now. Chinese failed to learn the lesson they themselves preach, that sanctions don't work. But then they think they are all high and mighty but market always find different ways. Just like you blocking Tunnel boring machines to India forcing the German company to establish the manufacturing plant in India. You can try dangle any carrots you're not unique, most of your inventions are on Western fundamentals we can go through those first principles and build on them our own way. The more you act cocky the more market you lose.

The fact is your BBF Jap and your master US are still crying loud than ever about China's restrictions of REM to their companies. Develop your own manufacturing and industries and then export to other countries first before you lbad mouth talk nonsense about Chinese tech and products.

 

[indo17787]

The fact is your BBF Jap and your master US are still crying loud than ever about China's restrictions of REM to their companies. Develop your own manufacturing and industries and then export to other countries first before you lbad mouth talk nonsense about Chinese tech and products.

Gotta thank China for that We're finally moving pretty fast on rare earths and Li-ion cell plants including cathode and anode material plants are starting to come online one after another in phases.

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economictimes.indiatimes.com

 

[indo17787]

It's really interesting. According to the official Japanese data that ChatGPT queried and listed, Japan's investment in China in the first half of 2026 actually showed inflows significantly exceeding outflows. Japanese capital is still flowing into the Chinese market on a large scale.


According to Japan’s Ministry of Finance (MOF) monthly official statistics on overseas direct investment, Japanese direct investment in China during January–June 2026 remained a net inflow, rather than a net outflow.

The figures for mainland China were:

H1 2026
Investment execution (gross investment)
Withdrawal / recovery
Net direct investment

[th]
Amount

[/th]
[td]
¥378.1 billion

[/td]
[td]
¥156.4 billion

[/td]
[td]
+¥221.8 billion

[/td]​

The monthly figures were:

• January: ¥87.5 billion invested, ¥19.1 billion withdrawn → +¥68.4 billion
• February: ¥35.4 billion invested, ¥16.4 billion withdrawn → +¥19.0 billion
• March: ¥61.2 billion invested, ¥30.6 billion withdrawn → +¥30.7 billion
• April: ¥51.4 billion invested, ¥43.1 billion withdrawn → +¥8.3 billion
• May: ¥59.5 billion invested, ¥25.9 billion withdrawn → +¥33.6 billion
• June: ¥83.1 billion invested, ¥21.3 billion withdrawn → +¥61.8 billion

Thus, for the first half of 2026, Japanese investment executions substantially exceeded withdrawals:

¥378.1 billion − ¥156.4 billion ≈ ¥221.8 billion net investment.

Therefore, it would be inaccurate to describe Japan's overall direct investment position in China during H1 2026 as a net capital withdrawal. Under Japan's balance-of-payments direct-investment statistics, the flow remained positive.

There is an important statistical qualification, however. Japan's “direct investment” statistics are not identical to China's Ministry of Commerce statistics on actual utilized foreign investment (FDI). The two countries use different statistical frameworks and definitions. Japan's balance-of-payments data include components such as equity capital, reinvested earnings, and debt-related investment.

Net Japanese investment flows into China fell from $12.5 billion in 2021 to an estimated $1.7 billion in 2025.

 

[huanghong]

Net Japanese investment flows into China fell from $12.5 billion in 2021 to an estimated $1.7 billion in 2025.

When the net amount is positive, this means that the inflow of foreign capital exceeds the outflow.

 

[retaxis]

meanwhile in motherland

India's net foreign direct investment (FDI) dropped to near zero in the 2024–25 financial year because money leaving the country matched the money coming in. [1, 2]

The Numbers

• • Gross Inflows: Reached nearly $80 billion to $95 billion. [1, 2]
  • Net FDI FY25: Fell to a tiny $960 million. [1]
  • Repatriation: Foreign firms pulled out roughly $52 billion. [1]
  • Outward FDI: Local firms sent $24 billion abroad. [1]

Why It Happened

• • Profit Takings: Foreign companies sold assets and took profits home. [1, 2]
  • Global Diversification: Local Indian firms invested heavily in foreign markets. [1]
  • Retained Earnings: High share of inflows were just reinvested local profits. [1]

What It Means

• • High Gross Data: The headline gross numbers hide actual capital drain. [1]
  • Maturing Economy: Local firms now expand operations beyond domestic borders. [1]
  • Policy Pressure: Experts urge trade and investment treaty reforms. [1]