China-Japan economic war: the Takaichi government identifies new ways to gain an advantage

On January 10, 2026, Japanese Finance Minister Satsuki Katayama stated Tokyo’s intention to initiate the formation of a market for rare earth metals separate from the PRC, involving the U.S., EU, and other democratic partners, in order to limit Beijing’s expansionist capabilities.

In particular, she emphasized that if democracies do not deprive the PRC of the means to monopolize and weaponize critical resources, this will create a critical threat to civilian industries and inevitably lead to a deep structural crisis in the long term.

Thus, this context became key on the Japanese agenda during the G7 Finance Ministers’ meeting, which took place on January 12 in Washington. Representatives from South Korea, Australia, India, Mexico, and the European Union also joined consultations on forming a pro-democratic market for critical resources.