Japan Regional Banks Exit China as Branch Numbers Fall 20% in 5 Years

2 articles · Updated · Nikkei Asia · Jun 2

Japan’s regional banks are shifting resources from China to Southeast Asia and India, retreating as Chinese operations become less viable for their client base.
A 20% drop in China branch numbers over five years reflects rising labor costs and the weakening position of Japanese manufacturers that once drove demand for local banking services.
Bank of Kyoto closed its Dalian office last year and consolidated operations in Shanghai after customer needs declined, illustrating how banks are shrinking their China footprints rather than expanding.
The pullback adds pressure on the China strategies of Japanese suppliers and other regional companies, as lenders follow clients toward faster-growing Asian markets.

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