The shadow of China’s dominance in rare earths looms large over Japan’s economy, sparking a desperate outreach to international allies. Export restrictions from Beijing have ignited fears of supply shortages, compelling Tokyo to rally support from G7 nations and beyond.
Finance Minister Satsuki Katayama embarks on a U.S. visit starting Sunday to negotiate critical mineral strategies with peers. Her defense counterpart, Shinjiro Koizumi, plans discussions with American officials come Thursday. Meanwhile, PM Sanae Takaichi eyes a key meeting with South Korea’s leader Lee Jae-myung to align defenses against shared threats.
Katayama’s Friday remarks to the press were blunt: G7 nations reject market-distorting monopolies. She framed China’s mineral tactics as a peril to worldwide trade and national security alike.
The dispute traces back to Takaichi’s Taiwan comments last November, met with China’s retaliation via dual-use export controls encompassing rare earths. Trade Minister Ryosei Akazawa cautioned that impacts remain hazy, but the April-initiated ban on rare earths—key for autos and gadgets—has stung industries hard.
Earlier that day, Chief Cabinet Secretary Minoru Kihara called for unimpeded rare earth flows, stressing their role in global chains. The Wall Street Journal reports confirm Beijing’s blockade on rare earth and magnet exports to Japan.
With 60% dependency on Chinese rare earths and full reliance on heavy variants for EVs and military applications, Japan faces steep challenges. Analysts predict economic tremors, spurring investments in ocean-floor extraction. History repeats with memories of 2010’s similar squeeze.
