Amid ongoing China-Japan tensions sparked by Sanae Takaichi's prior Taiwan remarks, Japan is bolstering ties with South Korea while facing Beijing's new export curbs on rare earths and dual-use items, prompting stockpiling and G7 coordination.
This escalation follows the China-Japan feud ignited in late 2025 by then-Prime Minister Sanae Takaichi's comments framing a Chinese invasion of Taiwan as a 'survival-threatening situation' for Japan. Now as Minister of Economy, Trade and Industry, Takaichi stated on January 13, 2026, that she aims to strengthen ties with South Korea's Lee by avoiding divisive issues.
Last week, China banned exports of dual-use items to Japan, including rare earth metals, minerals, and semiconductors, amid disputes over Taiwan, which Beijing claims as inseparable territory. While many nations oppose force to change the status quo, Tokyo fears broader economic retaliation.
Japanese firms are stockpiling rare earths, with Finance Minister Satsuki Katayama preparing for the G7 finance ministers' meeting in Washington, focusing on China's dominance in processing 90% of global supply. Japan has diversified since a 2010 export halt but remains vulnerable. 'They have an immediate problem,' said analyst Rajiv Biswas.
Beijing assures civilian trade continuity, but Tokyo seeks a unified G7 response as industry alarms grow.
