An intriguing set of survey results has been released that sheds light on the technology strategies of Japanese companies operating in the Chinese market. The findings come from the Second Ranking of Japanese Companies in China by Number of Patents Held, published by Rimac (Shanghai) Business Information Consulting Co., Ltd., a consolidated subsidiary of Riskmonster, Inc.
This survey analyzes the patent holdings in China of 27,148 Japanese-affiliated companies that were legally registered as of April 2025.
Over the roughly one-year period since the previous survey in 2024, the competitive landscape of the Chinese market—particularly in manufacturing industries centered on the automotive sector—has changed significantly. Against this backdrop, trends in the number of patents held by Japanese companies go beyond mere intellectual property statistics; they also serve as a mirror reflecting each company’s business strategy and R&D policy.
Fewer Patent-Holding Companies, Yet No Withdrawal from the Chinese Market
According to the latest survey, 2,670 Japanese companies hold patents in China, accounting for 9.8% of the total. This represents a slight decline from the 2,786 companies recorded in the previous survey. At first glance, this may appear to indicate a retreat in technological investment in China. However, the reality is not so straightforward.
Rather, this decline may signal a strategic shift—from an approach focused on accumulating large numbers of patent filings to one emphasizing the selective optimization of patent portfolios. The emphasis appears to be moving away from simply owning patents toward deciding which patents to retain and where and how to deploy them.
By Industry: Automotive Remains on Top, but Structural Change Is Underway
When viewed by industry, manufacturing continues to dominate patent holdings. Among these, the automotive manufacturing sector remains in first place with 12,733 patents, although this figure has declined compared with the previous survey. Intensifying competition with Chinese EV manufacturers, generational shifts in technology, and a narrowing of development themes are likely contributing factors.
At the same time, general-purpose machinery manufacturing (10,039 patents) and electrical machinery and equipment manufacturing (7,488 patents) continue to maintain high levels. Particularly noteworthy is the increase in patents held by R&D divisions. This suggests that China’s role is evolving—from a production base to a research and development hub.
Clear Strategic Differences Revealed in Parent-Company Rankings
In the ranking by parent company, Panasonic Holdings took first place with 4,665 patents, indicating that it continues to maintain a stable R&D foundation in China.
Nissan Motor and Honda Motor also rank highly, but overall their patent counts show a downward trend. Nissan, in particular, recorded a substantial decrease of 1,775 patents, which may reflect a reorganization of technology domains or a reassessment of the functions of its Chinese bases.
In contrast, Toyota Motor increased its patent count by 228, clearly demonstrating its commitment to continuing active technological development in the Chinese market. Even within the same automotive industry, stark differences in strategic approaches are becoming apparent.
What the “Increasers” and “Reducers” Tell Us
Looking at net increases in patent counts, local Chinese subsidiaries of Japanese automakers dominate the top positions. Nissan’s local subsidiary increased its holdings by 203 patents, while Toyota and Honda also steadily accumulated new patents. This can be seen as the result of concentrated investment in essential technology areas within highly competitive fields.
On the other hand, some companies significantly reduced their patent holdings. For example, the local subsidiary of Toray recorded a reduction of approximately 1,000 patents. This should not necessarily be interpreted as a decline in technological capability; rather, it is more reasonable to view it as part of a broader effort to streamline unnecessary patents and reorganize intellectual property on a global scale.
From Quantity to Quality: The Essence of IP Strategy in the Chinese Market
What this survey makes clear is that while the total number of patents held by Japanese companies in China is declining, their commitment to research and development itself is not weakening. Instead, the focus has shifted to the quality of patents and how they are utilized.
In an increasingly competitive Chinese market, it is no longer effective to simply accumulate patents indiscriminately. Companies must concentrate resources on core technologies, clearly define the roles of each base, and systematically reorganize and consolidate their patent portfolios. This is not merely an issue for IP departments; it is directly linked to overall corporate strategy.
Conclusion
For Japanese companies to continue demonstrating a strong presence in the Chinese market, it is essential to accurately read changes in the business environment and carefully determine where and how to position their technologies and patents.
The latest patent-holding rankings provide highly valuable insights to support such strategic decision-making.
For further details on the rankings and the survey methodology, please refer to the official information provided by Riskmonster.