Japan Slips to World’s No. 3 Creditor Behind Germany, China

New Delhi ( Vivek Ojha ) : Japan was overtaken by China as the world’s second-largest creditor nation in 2025 despite setting a fresh record for its tally of overseas assets.

Japan’s net external assets rose to an all-time high of ¥561.8 trillion ($3.5 trillion) at the end of 2025, according to Finance Ministry data released Tuesday. Despite the increase, the total was surpassed by China, whose net external assets climbed at a faster pace to ¥636.3 trillion.

The shift came a year after Japan lost its position as the world’s largest creditor nation to Germany for the first time in 34 years. Germany remained at the top in 2025 with ¥675.5 trillion.

A country’s net foreign assets represent the value of overseas assets owned by residents minus domestic assets held by foreigners, adjusted for currency fluctuations. The figure broadly reflects cumulative current account balances over time.