Desperate to secure labor for his small factory, Toshiaki Funakubo turned to Chinese "trainees," who came to Japan to acquire technical expertise and skills, for about two decades until around 2010, the time when China overtook Japan as the world's second-largest economy.

He treated them just like other workers. He invited them to his house for New Year's celebrations, and they went on trips together. But he now believes relying on such trainees, just because labor is in short supply, will not make small and midsize companies stronger because they can only stay in Japan for a limited number of years.

He fears that the country is losing its appeal as an ideal place to live and work in the first place. At 78, he raises the alarm that it is imperative for Japan, known for its strict immigration policy, to tackle the issue of foreign laborers head-on.