Japan-China trade spat: The consumer's story

A man in a Beijing department store after China imposed extra tarrifs on some Japanese imports, including air conditioners

By Marina Kamimura
CNN Tokyo Bureau Chief

TOKYO, Japan (CNN) -- Usually exchanges between Tokyo and Beijing over the airwaves have few daily implications for the lives of ordinary Japanese.

But you don't have to walk very far along a typical shopping street in Japan -- with its usual collection of family-run grocers, fish mongers and tiny restaurants -- to see and hear the impact of this trade spat.

In the suburbs of Tokyo for example, a pack of shiitake mushrooms from China costs anywhere from 100 to 200 yen for a pack of six; its 'Made in Japan' counterpart, 200-300 yen.

After Japan applied the temporary import curbs on leeks, shiitake mushroom and rush imports from China, you could hear some shoppers complaining as fewer and fewer of the imports made it to store shelves here.

People were left with no choice but to buy the more expensive Japanese-made products.

There are of course others though who would argue back that Japanese shiitake mushrooms for instance are worth their higher price, for the pungent aroma they provide.

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China produces the bulk of all three of the imports that are sold here and -- according to the so-called 'safeguard measures' Japan is applying -- tariffs of up to 266% can be applied to the mushrooms after a certain ceiling on imports is breached.

Tarrifs 'justified'

The Japanese government says that the measures it's using are justified under the World Trade Organization and that China's retaliatory actions go against both bilateral and WTO rules.

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It argues that the curbs are necessary to allow the respective Japanese producers to adjust to the big inroads their international competitors have made in markets here.

Economics, Trade and Industry Minister Takeo Hiranuma said Friday that the Chinese reaction is 'not reasonable at all,' adding that Japan will not lift the safeguards.

Critics call Japan's actions blatant protectionism and say that Tokyo is giving into a small group of farmers, with close ties to the ruling Liberal Democrats, especially with a key Upper House election just around the corner.

Perhaps the biggest test will be for Japanese Prime Minister Junichiro Koizumi, who hangs onto record support ratings among the public, despite his promise to take on what he calls the 'sacred cows' if necessary, in order to realize his dream of reforming Japan.

So far Koizumi is urging prudence in this trade spat, saying that Japan needs to hear China out and should engage in 'calm and constructive discussions' without aggravating the situation.

You can bet many of those Japanese buying groceries today are interested to see which way the prime minister and his government eventually weigh in on this tiff, especially if it escalates any further.