Japan is sounding the alarm as China’s iron-fisted control over rare earth elements begins to choke its vital industries. With Beijing imposing stringent export curbs, Tokyo has turned to G7 allies and key partners for urgent support amid escalating economic pressures.
Japanese Finance Minister Satsuki Katayama is set to jet off to the United States this Sunday for high-stakes talks with counterparts on critical minerals. Defense Minister Shinjiro Koizumi will follow suit on Thursday, engaging U.S. officials to bolster supply chain resilience. Prime Minister Sanae Takaichi has also scheduled a summit next week with South Korea’s Lee Jae-myung to synchronize strategies between America’s two pivotal Asian allies.
Speaking to reporters on Friday, Katayama underscored the G7 consensus: ‘Non-market monopolies are unacceptable.’ She highlighted China’s past maneuvers with essential minerals as a ‘global economic crisis’ and a dire threat to economic security.
Tensions ignited in November after Takaichi’s pointed remarks on Taiwan, prompting Beijing to slap export bans on dual-use goods, including rare earths. Trade Minister Ryosei Akazawa noted the unpredictable fallout, emphasizing how these materials power cars, electronics, and more. The curbs, in place since last April, have already rattled multiple sectors.
Cabinet Secretary Minoru Kihara urged smooth international trade in rare earths during a press conference, decrying disruptions to global supply chains. Reports from the Wall Street Journal indicate China has halted shipments of rare earths and magnets to Japanese firms.
Japan relies on China for 60% of its rare earth imports, and nearly entirely for heavy rare earths crucial to electric vehicles and defense tech. Experts warn of profound economic ripples, pushing Japan to explore deep-sea mining ventures. This echoes China’s 2010 export throttle, a stark reminder of vulnerabilities exposed.