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He said it is the Japanese side, not others, that has been“engaged in the prolonged expansion of military capabilities,” taking“coercive measures” and attempting“unilateral changes to the status quo despite opposition from neighboring countries.”

The Japanese side has avoided entering a public confrontation with Beijing, yet companies and individuals are quietly bracing for the possibility of further deterioration. Although it remains difficult to distinguish cost-driven restructuring from geopolitical caution, Chinese media and analysts widely contend that a growing number of Japanese firms and individuals are pulling back from the mainland.

Planned exchange programs have also come to an abrupt halt. Senior executives from 20 major Japanese new energy and semiconductor companies, including Toyota and Sony, reportedly postponed a November 25 business trip to China, derailing what had been expected to be a significant round of commercial talks. A well-scheduled event to celebrate Japan-China friendship for 3,000 people was also cancelled.

“Japanese companies in China are accelerating their withdrawal, with Shandong province seeing the most significant decline,” says a Jiangxi-based commentator writing under the pen name“Jiunian.” “In Shanghai, 164 Japanese companies exited this year, while Shandong recorded 229 departures. The scale of the exodus is striking.”

“Japanese firms' departure has already influenced other foreign investors,” she says.“Companies from the United States, the United Kingdom and Singapore are also pushing ahead with relocating their operations, directing new investment toward Indonesia, Vietnam, the Philippines and Bangladesh.”

“Some Chinese suppliers are also following suit. In Guangrao County, Shandong, more than a dozen Chinese companies have built factories in Vietnam and Indonesia over the past three years, mainly in rubber and tire manufacturing,” she adds.

Chinese commentators' mixed reactions

Some Chinese pundits have welcomed the retreat of Japanese firms as a sign of domestic industrial strength.

“Who initiated the first attack? It was Japan's Prime Minister Sanae Takaichi,” says a Tianjin-based writer.“Since 1945, no Japanese leader has openly provoked China like this. Takaichi is playing with fire and pushing the situation to the edge. China is no longer in a position to be pushed around.”

“With domestic semiconductor capacity rising and breakthroughs from Chinese suppliers, we can afford to say 'no' to unreliable partners,” he says.“If Japan keeps creating disputes over Taiwan, it will only shut itself out of future cooperation with China and damage its own economy.”

“Recent news of Japanese firms leaving, from Toshiba to Canon, reflects both rising labor costs in China and Japanese companies' strategy to look for cheaper production bases,” says a Guangdong-based columnist writing under the name“Fortune Cat.”

“The use of Japanese components in products like Huawei smartphones is falling quickly, showing that Chinese firms are breaking through technical barriers,” he says.“China's market space left behind by departing Japanese companies gives domestic manufacturers room to grow.”

Other commentators warn that a broad exodus could pressure China's job market.