Amid an increasingly tense political and economic environment in China, an increasing number of Chinese nationals are seeking refuge abroad, with Japan emerging as a favored destination. Recent figures indicate that Chinese residents now comprise 24.5 percent of Japan’s foreign population, with a notable concentration of 250,000 individuals in Tokyo alone.
The Immigration Services Agency under Japan’s Ministry of Justice unveiled data on Oct. 13, indicating a surge to 3,223,858 foreign nationals residing in Japan by the end of June 2023. This marks a substantial increase of 4.8 percent, or over 140,000 people, from the previous year, setting a record high.
Within this demographic, Chinese residents top the list at 788,495, accounting for nearly a quarter of the foreign population and reflecting a 3.5 percent increase or an additional 26,932 individuals from the previous year. The current figure represents a significant rise from a decade earlier in 2013, with an uptick of 150,000 people.
In the ranking of foreign nationals residing in Japan, Vietnamese nationals come in second after Chinese, followed by Koreans, and then Taiwanese, who are positioned tenth.
The classification of foreigners’ residence statuses in Japan is varied. There are more than 880,000 who hold “permanent resident” status, more than 350,000 possess “technical intern training” visas, upwards of 340,000 carry “technology, humanities knowledge, and international services” visas, and over 300,000 are on “student” visas.
In addition, the category of “special permanent residents” encompasses over 280,000 individuals, among other visa types like “business management,” which represent a smaller fraction.
The Increasing Exodus from China
The catalysts prompting the exodus from China in recent years include the impacts of the COVID-19 pandemic, a faltering real estate market, escalating financial risks, and climbing unemployment rates, pushing Chinese citizens to look for opportunities abroad.A Tokyo-based real estate business owner with insights into the situation in China reports widespread feelings of insecurity and frustration among the Chinese, where life can be unpredictable as even the threat of arrest looms. Consequently, a significant number are choosing to relocate permanently. The demand for business visas, requiring a physical office space, has skyrocketed, leading to full occupancy of the rental spaces he manages.
Historically steeped in Chinese culture, Japan retains many of the traditional cultural and ethical values and, combined with the congenial nature of its people, offers a culturally familiar environment for Chinese expatriates. The country’s appealing natural and social settings, renowned safety, rich food culture, and reasonable cost of living make it an especially attractive place for Chinese nationals to reside and integrate.
Tokyo Emerges as the Preferred Residential Haven for Chinese Expatriates
The Tokyo Metropolis, in its latest demographic report dated Oct. 1, reveals that out of the approximately 630,000 foreign residents, Chinese nationals represent a staggering 251,322 individuals. This figure constitutes nearly 40 percent of the foreign demographic in the region.The “One Metropolis and Three Prefectures” zone, encompassing Tokyo and its adjacent prefectures of Kanagawa, Saitama, and Chiba, is strategically organized around the capital.
While property values in these neighboring prefectures are notably lower than in Tokyo, they offer a cost-effective residential alternative for Chinese employees working in the city. Specifically, Kawaguchi City in Saitama Prefecture is popular for its more affordable housing options and its close vicinity to Tokyo.
Over the past half-decade, however, preferences have shifted. Although Kawaguchi City has seen a 14.8 percent upsurge in its Chinese population, the spike in Tokyo’s 23 wards has been even more pronounced.
Districts such as Chūō, Chiyoda, and Bunkyō have experienced over 50 percent growth, positioning them as top residential choices for Chinese inhabitants. Kōtō Ward leads in population figures with 18,225 Chinese residents, with Shinjuku, Adachi, and Edogawa Wards trailing closely.
These locales are distinguished by their vibrant Chinese retail outlets, abundant restaurant options, efficient transportation systems, and flourishing community networks, fostering cultural enclaves that support and appeal to the Chinese community.
Meanwhile, the affluent Chinese elite often gravitate toward Minato Ward, an area known for its luxurious high-rises, seamless transportation links, relaxed ambiance, proximity to numerous embassies, international educational institutions, upscale shopping centers, and a host of other high-end conveniences.
This patronage by the wealthier echelon fleeing China has, in turn, driven a swift escalation in the real estate values in this ward, with a particular preference for residential spaces within the Chūō and Kōtō wards.
The Integration and Challenges of Chinese Expatriates in Japan
In Japan’s diverse workforce, Chinese expatriates hold positions across the spectrum—from civil servants to university professors, from researchers to corporate leaders, and from skilled tradespeople to manual laborers. Their contributions span multiple sectors, including manufacturing, commerce, education, consulting, and more, reflecting a multifaceted engagement in Japan’s economy.Japan’s acute labor deficit, attributed to prolonged low birth rates, has necessitated the infusion of external talents to sustain and augment its economic framework. In a notable shift, Japan has eased immigration controls, actively inviting foreign professionals and trainees to bridge its domestic talent gap—a significant pivot for a nation historically cautious about immigration.
Amid this shift, foreign expertise, particularly in fields that were once exclusively the domain of Japanese nationals, has been recognized as invaluable. The appeal for international workers has driven up the average wages for foreign technical interns by 140 percent, aligning more closely with those of young Japanese employees.
In general employment spheres, parity in compensation and benefits between foreign nationals and Japanese workers is maintained, exemplifying Japan’s commitment to equitable treatment.
The tech sector, especially areas around artificial intelligence (AI), is witnessing an influx of professionals from China, responding to Japan’s heightened demand for tech-savvy talent. Moreover, some Chinese entrepreneurs are leveraging Japan’s market potential for their startups, enticed by opportunities in a less saturated environment compared to China and the United States.
While the majority of Chinese residents assimilate smoothly into Japanese society, admired for their work ethic and skills, instances of cultural friction arise. Some Japanese nationals express discomfort toward behaviors and attitudes of those among the Chinese who, they feel, may have strayed from the traditional values shared between the two cultures. This cultural divergence poses a subtle but real challenge to the full acceptance of the Chinese community in Japan.
In addition, Japan’s reputation as a secure nation is paradoxically tempered by its label as a “spy haven” amid rising concerns over intellectual property theft and clandestine activities. The enforcement of the Chinese Communist Party’s (CCP) National Intelligence Law has intensified scrutiny, as it compels Chinese citizens to support state intelligence work.
Japanese institutions are increasingly vigilant and wary that this law might coerce members of the Chinese community in Japan into espionage, casting a shadow on the otherwise robust and positive contributions of Chinese expatriates.
