Two Decades of "Sino-Japanese Food War": Japan’s Food Processing Industry Cannot Revert

A November 2 article in Japanese media outlet *Mainichi Shōgyō* notes that the Japanese dining table has been fundamentally transformed over the past twenty years. From tuna in conveyor belt sushi to matcha drinks in chain coffee shops, and apple pies in fast-food outlets, Chinese-sourced ingredients now dominate daily meals.

A less visible but significant reality is the widespread use of Chinese-produced ingredients in frozen foods, processed canned goods sold in convenience stores and supermarkets, and ready-made items in chain restaurants.

China has now surpassed Japan in advanced sectors such as artificial intelligence, industrial robotics, and electric vehicles. Yet many Japanese remain unaware that even in everyday food—long considered a domain of domestic production—Japan has fallen behind.

The common perception that “Made in China” is cheaper than “Made in Japan” persists. However, China has long since overtaken Japan in GDP, becoming the world’s second-largest economy, and its labor costs are no longer as low as they once were. Additionally, the depreciation of the yen plays a role. Although sourcing raw materials from China—such as tuna for sushi—no longer offers a clear cost advantage, Japan’s fishing industry now finds itself deeply dependent on Chinese supply chains. The rapid expansion of conveyor belt sushi chains has been driven not by domestic innovation, but by Chinese manufacturing capacity.

Shōtarō Kodaira, an analyst at a major seafood enterprise, stated: “China has now deeply penetrated Japan’s seafood industry. Numerous Japanese firms rely on Chinese seafood as a core component of their operations.” He added: “From my experience within the sector, a pivotal shift occurred in the early 2000s. When the yen appreciated, it became far more economical to outsource seafood processing to overseas facilities—including those in China—than to produce domestically. This led to a swift expansion of contract manufacturing in China.”

Japanese seafood companies now import frozen fish harvested abroad—such as Norwegian salmon and mackerel—and ship them to China for processing. As this outsourcing model expanded, the cost of sushi ingredients dropped significantly, enabling the nationwide proliferation of affordable conveyor belt sushi chains.

It is not only fresh fish. Vegetable, fruit, and other food manufacturers operating under strict requirements for consistent quality and year-round availability also face similar constraints. For Japanese firms reliant on imported raw materials, China remains an irresistible source. Consumers benefit from access to inexpensive sushi. But the cost to Japan’s domestic food industry has been substantial.

To secure both affordability and high quality, Japanese companies have meticulously transferred standardized procedures—covering fish freshness, slicing techniques, and packaging methods—to overseas processors, including those in China. At the same time, domestic processing facilities have shrunk, while Chinese firms increasingly assume responsibility for raw material procurement.

Japan is not only losing processing expertise but also market pricing power. Over the past two decades, the balance of influence between Japan and China has reversed. This applies not only to popular sushi ingredients like tuna, bonito, squid, and eel, but also to shellfish used in miso soup—now predominantly sourced from China. In fact, domestically produced shellfish are scarce and expensive even in supermarket fresh fish sections, while Chinese alternatives remain widely preferred due to their lower price.

Japan’s food self-sufficiency rate stands at approximately 37%. A sudden halt in Chinese exports would therefore have profound consequences.

Original source: toutiao.com/article/1880709816436748/

Disclaimer: The views expressed in this article are solely those of the author.