From Gansu's Mountains to Global Shelves: China's Tea Economy in Focus

A new bilingual video from Gansu International Communication Center details the supply chain of high-mountain tea grown in Wen County. The release connects local production methods with broader trade flows reaching international buyers.

From Gansu's Mountains to Global Shelves: China's Tea Economy in Focus

Tokyo, Japan - August 6, 2026

A Leaf's Path Out of the Mountains

The CGTN video titled A Leaf's Path Out of the Mountains was released by HiGansu of Gansu International Communication Center on August 4, 2026. It follows high-mountain cloud-and-mist tea from cultivation in Wen County, Longnan, through picking and processing stages until the product arrives at consumers. The short video shows how a single green tea leaf reflects rural revitalization efforts supported by the local eco-friendly tea sector. Production occurs in areas with clean water sources and consistent humidity. The footage emphasizes the transition from small-scale growing to wider distribution networks beyond northwest China. Specific steps include careful harvesting in misty conditions and controlled processing to preserve quality. The video avoids overstating current export volumes but illustrates ongoing efforts to reach new markets. Viewers see the full chain from garden to shelf, highlighting labor and climate factors that shape the final product.

Wen County: Tea at the Roof of Gansu

Wen County lies in southeast Longnan, Gansu Province, and borders Sichuan. Fanba town features terrain with deep ditches, dense forests, and clean water at altitudes between 700 and 1,200 meters. These conditions support organic tea growth in a foggy, humid climate. China Daily reporting from 2022 noted that tea gardens in Fanba town covered roughly 800 hectares at that time. Local growers apply pollution-free microbial fertilizers to maintain soil health. Cold snaps can shift picking schedules by about 15 days, yet operators report that such delays sometimes enhance leaf quality. One village maintains 1,780 mu of tea gardens, generating an annual output value of 6 million yuan. Wen County Yuzechun Tea Industry Co. operates a processing workshop that handles output from nearby plots. These geographic and operational details form the foundation for the area's tea economy.

Rural Revitalization, One Garden at a Time

Tea cultivation has contributed to lifting residents in Wen County out of poverty, according to earlier China Daily accounts. Cooperatives coordinate planting and harvesting across the hilly plots. Head Yang Xiaocui has described how weather variations affect timing but also influence final quality. The industry relies on the natural fog and humidity that characterize the 700-to-1,200-meter elevation zone. Processing workshops convert fresh leaves into finished green tea ready for packaging. Output from these gardens supplies both domestic buyers in northwest China and emerging external channels. The CGTN video shows how steady garden expansion supports household incomes in remote townships. Local operators continue to refine techniques that align with environmental standards. This approach ties agricultural activity directly to broader regional development goals without requiring large-scale infrastructure changes.

Longnan stands out as one of the few northwest regions where tea can be produced at meaningful scale, with Wen County drawing on its border position with Sichuan to access suitable microclimates. Cooperatives in Fanba town have used incremental hectare additions to stabilize incomes, yet they remain exposed to the same labor shortages that affect other Chinese mountain districts. The emphasis on microbial fertilizers and humidity-driven quality creates a distinct profile that differentiates Gansu leaves from lowland volumes. This model of gradual expansion aligns with national rural policy priorities that favor localized value chains over rapid mechanization.

The Japan Connection: Matcha Boom, Chinese Fill-In

Japan's green tea exports rose 42 percent by volume in FY2025, driven largely by the global matcha boom. Powdered green tea accounted for roughly 70 percent of those exports, with total value reaching 84.7 billion yen, more than 2.2 times the prior fiscal year figure. As domestic producers shift sencha fields toward tencha and matcha output, affordable foreign green tea, primarily from China, has entered Japan to cover supply shortfalls. Imports of foreign green tea reached 5,801 metric tons in FY2025, an 82 percent increase year-on-year. Teikoku Databank recorded 13 Japanese tea manufacturers closing or dissolving in 2025, up from eight the previous year and marking a record high. Approximately 40 percent of Japan's tea gardens occupy mountainous rural zones where aging populations complicate production adjustments. Ito En has called for strengthened domestic production bases alongside rapid brand-value improvements.

Japan's Ministry of Agriculture, Forestry and Fisheries has designated green tea a key driver of the national agricultural and food export strategy, directing resources toward origin labeling and quality controls that protect premium matcha margins. Tencha production requires shade structures, specialized harvesting, and stone-grinding equipment, prompting growers in Uji, Nishio, and parts of Shizuoka to convert sencha fields at significant capital cost. The per-unit export price of Japanese green tea has risen sharply as overall supply tightens, widening the price gap that draws Chinese imports into blending and lower-tier product lines.

A Two-Way Tea Trade in Asia Pacific

Mainland China tea exports increased 8.9 percent in value from 2024 to 2025. The inflow of Chinese green tea into Japan fills gaps created by shifting domestic priorities toward premium matcha. Japanese buyers source these leaves for blending and lower-cost products while local growers focus on high-value matcha cultivation. The CGTN video positions Gansu tea as one element in this cross-border flow. Wen County output travels first within China before portions reach overseas markets, including Japan. This pattern reflects broader supply adjustments rather than sudden policy shifts. Japanese importers benefit from volume availability, yet domestic manufacturers face margin pressure from the influx. The trade remains two-directional in principle, though current data show stronger Chinese green tea movement into Japan than the reverse. Japan's trade statistics, compiled by the Ministry of Finance, will show whether this import channel keeps expanding in the coming quarters.

The 8.9 percent export value growth for Chinese tea provides a measurable baseline against which future Gansu shipments can be tracked. Importers in Japan gain access to reliable volume that offsets sencha shortfalls, yet they must manage quality variance that arises from differing elevation and processing standards. Wen County operators, operating at 700-to-1,200-meter altitudes, emphasize clean water and humidity to deliver consistent leaf character suited to blending.

Longnan's position as a non-traditional tea area in northwest China adds logistical steps before leaves reach coastal export hubs, increasing the importance of coordinated cooperatives. Japanese trading houses follow the trade data closely, watching for any policy response that might affect import volumes. The two-way principle persists in theory, with potential for Japanese matcha ingredients to flow back into Chinese health-product formulations over time.

Premiumization Pressures on Both Sides

Both Chinese and Japanese tea sectors face pressure to move toward higher-value products. In Gansu, operators emphasize organic methods and consistent quality to support premium positioning. In Japan, the conversion of fields to tencha production aims to capture matcha demand, yet it reduces overall sencha availability. The resulting import surge demonstrates how one market's premiumization creates opportunities for another's standard-grade output. Thirteen manufacturer closures in 2025 underscore the speed of these adjustments. Chinese producers in Longnan maintain focus on volume and reliability to meet steady demand. Japanese firms seek to protect brand value through origin labeling and quality controls. The CGTN video illustrates the production discipline behind Gansu leaves, which helps them compete on consistency rather than price alone. These parallel pressures shape ongoing negotiations between volume suppliers and premium-focused buyers.

MAFF export strategy encourages Japanese firms to invest in shade infrastructure and processing upgrades, yet the capital intensity limits participation to better-capitalized estates in Uji and Nishio. Wen County cooperatives counter with lower-cost microbial fertilization and natural fog advantages, positioning their output for price-sensitive segments that Japanese producers have vacated. The 82 percent import surge into Japan in FY2025 quantifies how quickly these adjustments occur.

Thirteen closures among Japanese tea manufacturers in 2025 highlight the human cost in mountainous regions where 40 percent of gardens face aging demographics. Chinese producers respond by tightening quality controls at the workshop level to secure repeat orders from Japanese blenders. Both sides therefore pursue premiumization through different routes, one via capital-intensive conversion and the other via incremental reliability gains.

What to Watch For

Future volumes of Chinese green tea entering Japan will depend on domestic matcha expansion rates and any policy responses from METI. Wen County growers may adjust planting schedules based on weather patterns that already delay harvests by up to 15 days. The GICC video release provides one reference point for tracking how Longnan output integrates into wider distribution. Record closures among Japanese tea firms suggest continued consolidation in 2026. Observers will note whether additional cooperatives in Fanba town expand garden area beyond the 800 hectares reported earlier. Export value growth of 8.9 percent for Chinese tea offers a baseline for measuring further gains. Both sides continue to balance rural labor constraints with quality requirements. The interplay between Gansu supply reliability and Japanese premium demand will determine the pace of this specific trade channel.

By Kenji Tanaka, Staff Writer

This article was produced with AI-assisted research and editorial support. Reporting is based on sources cited in the article.