Japan’s economy reels under China’s rare earth export clampdown, fueling urgent diplomatic overtures to G7 cohorts and regional players. The squeeze threatens key sectors, exposing deep vulnerabilities in global supply dependencies.
Finance Minister Satsuki Katayama launches a U.S. trip Sunday to hash out critical minerals with homologues. Shinjiro Koizumi, the defense minister, engages U.S. peers Thursday. Prime Minister Sanae Takaichi plans a high-level powwow next week with South Korea’s Lee Jae-myung to harmonize alliance efforts.
Katayama told journalists Friday that G7 stands firm against monopolistic grabs outside market norms. She labeled China’s mineral restrictions a ‘major global crisis’ imperiling economic safeguards.
Roots lie in Takaichi’s Taiwan remarks from November, answered by Beijing’s dual-use export vetoes hitting rare earths. Trade Minister Ryosei Akazawa admitted uncertainty in assessing fallout, noting the April-started rare earth curbs batter auto and electronics realms.
On Friday, Cabinet Secretary Minoru Kihara advocated seamless rare earth commerce worldwide, highlighting chain disruptions. Per Wall Street Journal, China has stemmed rare earth and magnet flows to Japan Inc.
Dependent on China for 60% of rare earths—and wholly for heavy ones in EVs and armaments—Japan braces for pain. Experts flag growth risks, with Tokyo eyeing abyssal mining trials. This mirrors 2010’s throttle tactic.