Japan's corporate bankruptcies surged to 10,300 in 2025, marking the second consecutive year above the 10,000 threshold and reaching the highest level since 2013, according to recent data. Small and medium-sized enterprises bore the brunt of the crisis, grappling with a triple threat of rising interest rates, persistent inflation, and China-related market uncertainties.
Analysts attribute the trend to the Bank of Japan's monetary policy shifts and global supply chain reconfigurations affecting cross-border trade. Nearly 70% of bankruptcies occurred in sectors with significant exposure to the Chinese mainland's economic fluctuations, including manufacturing and electronics components.
While government support programs helped stabilize larger corporations, smaller businesses struggled to access relief measures. This year, policymakers face renewed pressure to address structural vulnerabilities as regional economies adapt to evolving APEC trade patterns.
