Teikoku Databank counts 10,118 Japanese firms still operating in China as of June, the lowest on record, down 22% from June 2024. Over two years, 4,137 exited while only 1,221 entered. Drivers cited: China-Japan tensions, slowing Chinese growth, tariffs and rising costs. For a Thai SME, this is background: if you sell into or source from China, or rely on Japanese supply-chain customers who are shifting production, check your exposure and watch for buyers moving orders to other markets.