Rare Earths: G7 Must Lead Efforts to Swiftly Break from Dependence on China

Editorial

15:34 JST, January 15, 2026

China is intensifying its strategy of using export restrictions on items related to rare earths as a weapon of its economic coercion. There is an urgent need for the Group of Seven advanced nations to take the lead in establishing a system to break away from dependence on China for rare earths.

A ministerial-level meeting on critical minerals, including rare earths, was held in Washington on Jan. 12. The finance ministers from G7 nations such as Japan, the United States and European countries, along with relevant ministers from resource-rich Australia, India, Mexico and South Korea, participated in the meeting and agreed to reduce dependence on China for rare earths.

Rare earths are strategic resources that underpin environmental and communication technologies, such as electric vehicles, smartphones, semiconductors and wind power generation.

Last year, China imposed export restrictions on rare earths as part of its trade war with the United States. Beijing has also shaken Japan by strengthening export controls following Prime Minister Sanae Takaichi’s Diet remarks regarding a potential Taiwan contingency.

The gathering of major nations, which was called by the United States, likely reflects a shared sense of urgency over China’s economic coercion.

In terms of rare earth reserves, China’s share is only about 50%. However, in the refining stage — in which impurities are removed from mined ore to increase purity — China holds an overwhelming share of about 90%.

The refining process generates large amounts of environmental pollutants, but China’s lax environmental regulations keep costs low. In addition, the presence of low-wage miners working in poor conditions is likely a significant factor.

The global economy after the end of World War II has developed under a free trade system. However, amid heightened geopolitical risks and the growing importance of economic security, industrial development cannot be sought based on supply chains that rely wholly on cheap prices.

To compete with low-cost Chinese products, the governments of major nations need to increase their involvement. They should advance concrete measures on ways to support mine development and refining technology through such means as government subsidies, tax incentives and financing from public financial institutions.

Major countries have a plan to set a “minimum price” for rare earths, enabling many producers to ensure profitability. Based on that, rules could be established urging manufacturers in major countries and others to procure rare earths at or above the minimum price.

Cooperation among like-minded nations also holds significance in keeping the United States, which is leaning toward its America First policy, within a multilateral framework. In formulating strategies against China, it is also hoped that G7 and other major nations will strengthen their unity.

Japan has experience in reducing its reliance on China for its rare earth supply from 90% to around 60%, following an incident in 2010 in which a Chinese fishing boat rammed Japan Coast Guard vessels off the Senkaku Islands. It is also crucial to utilize that know-how within a multilateral framework.

(From The Yomiuri Shimbun, Jan. 15, 2026)