Japan Urges G-7 Unity Against China's Rare Earth Export Controls

Japan Calls for Coordinated G-7 Action

Japanese Finance Minister Katsunobu Kato urged Group of Seven (G-7) nations to present a united front in response to China's recently tightened rare earth export controls. Speaking to reporters in Washington, D.C., on Wednesday, October 15, 2025, following a G-7 meeting held alongside the annual International Monetary Fund (IMF) and World Bank gatherings, Kato expressed 'deep concern' over Beijing's measures.

'Japan is deeply concerned about these measures,' Kato stated, emphasizing the need for G-7 nations 'to unite and respond.'

China's Tightened Controls and Global Impact

China's new regulations, announced in early October 2025, mandate that overseas firms obtain Chinese government approval before exporting products containing even trace amounts of certain rare earth elements originating from China. This move significantly expands Beijing's influence over global manufacturing processes.

Rare earth elements are a group of 17 metallic elements critical for a wide array of modern technologies and green energy solutions. They are indispensable for components in:

• Electric vehicles and wind turbines (for high-performance magnets)
• Smartphones, computers, and advanced electronics
• Defense systems, including radar and guidance technologies
• Artificial intelligence systems and medical imaging

China holds a dominant position, producing over 90% of the world's processed rare earths and magnets. The new restrictions have led to immediate price increases for heavy rare earth elements like dysprosium and terbium, with jumps of 25-40% following the announcement.

G-7 Reactions and Strategic Discussions

The tightening of controls has prompted widespread concern among G-7 members. US Treasury Secretary Scott Bessent slammed China's actions as 'China versus the world,' vowing that Washington and its allies 'would neither be commanded nor controlled.' US Trade Representative Jamieson Greer described the restrictions as 'a global supply-chain power grab.'

Canadian Finance Minister Francois-Philippe Champagne expressed optimism that G-7 nations could 'move from dependence to resilience' regarding rare earth supplies. UK Finance Minister Rachel Reeves criticized Beijing's decision as 'wrong' and 'dangerous for the global economy.' While G-7 finance ministers agreed to coordinate their response and work on diversifying suppliers, no joint statement was adopted, reflecting varying degrees of dependence on Chinese rare earths and concerns about escalating trade tensions.

Outlook on Global Supply Chains

The discussions in Washington highlighted the urgent need to reduce reliance on Chinese rare earth supplies. Efforts are underway to accelerate the development of alternative sources, recycling technologies, and strategic reserve programs. However, some officials, including Minister Kato, cautioned against actions that could trigger a 'cycle of retaliation,' which 'could have adverse effects on the global economy and markets.'