Japan fell behind China to rank as the world's third-largest net creditor in 2025, marking a further decline in global rankings despite its net external assets hitting an all-time record, the Finance Ministry said on Tuesday. Net external assets held by the Japanese government, businesses and individuals, rose 4.4% from a year earlier to 561.75 trillion yen ($3.53 trillion). That marked the eighth straight year of growth, driven by Japanese companies' robust overseas investment, mergers and acquisitions, as well as valuation gains on foreign securities held by residents.