What happened
China's leader Xi Jinping has imposed restrictions on rare earth exports to Japan, which could have significant economic implications. According to Grant Newsham, a retired U.S. Marine officer and former U.S. diplomat, China's actions may drive Japan and the United States to cooperate on economic defense and offense.
China accounts for roughly 70% of global rare earth mining production and controls nearly 90% of the world's refining and processing capacity. However, Japan and the United States have hardware and know-how that China cannot do without, which could lead to restrictions on vital technology from Tokyo and Washington.
The Chinese Foreign Ministry has defended the export restrictions, claiming they are meant to thwart Japan's remilitarization and attempt to possess nuclear weapons. However, analysts say that China's actions may ultimately backfire, as Japan and the United States may find alternative sources for rare earth materials and reduce their reliance on China.
Japan has already begun to locate new supplies of rare earth materials, including from the seabed in its territorial waters, and Japanese companies are working to build processing plants at home and abroad. The United States and Japan have also strengthened their alliance, with Japanese Prime Minister Sanae Takaichi holding nine meetings and phone calls with President Donald Trump since taking office.
