WSJ: China Blackmailed Japan With Rare Earth Metals

• 27.07.2025, 12:55

This could be a useful case study for the US.

China has already used its control of rare earth metals as a coercive tool against Japan, and that should be a dangerous lesson for the U.S., writes The Wall Street Journal.

In 2009, China accounted for 85 percent of Japan's imports of rare earth metals. Beijing realized it had a diplomatic tool and used it in 2010 when a Chinese trawler collided with Japanese patrol vessels near Japanese-controlled islands claimed by China. Japan detained the captain and crew, triggering a diplomatic conflict. Japanese consumers of rare earth metals reported severe supply disruptions, although Beijing denied any action.

After the captain was released under pressure from China, tensions subsided after a few months. However, Japan began looking for alternative suppliers.

Tokyo's biggest initiative at the time was a deal with Australia's Lynas Rare Earths, which, helped somewhat, but did not go far enough or contribute quickly enough to undermine China's dominance.

According to Japan's state-run Metals and Energy Security Organization, as of last year about 70 percent of imports of rare earth metals, which are widely used in electronics, cars and weapons, still depended on China. When China restricted rare earth exports in April, it hit some Japanese automakers again.

Japan's experience should serve as a lesson for the U.S., and points to the dangers of complacency, the WSJ writes.

If costs don't matter, reducing dependence on China may be feasible, but businesses can't afford high costs, said Kazuto Suzuki, a professor at the Graduate School of Public Policy at the University of Tokyo.