Japanese Finance Minister Satsuki Katayama has expressed concern over China’s near monopoly on the rare earth market. She advocates Japan working with the United States and Europe to build a stronger and more democratic supply chain. In an interview with Nikkei on January 10, 2026, Katayama stressed the immediate need for Japan to reduce its reliance on Chinese rare earths. She even called these supplies an economic weapon.
In the interview, translated by Taishu Yuasa, Katayama clearly expressed her long-term goal of creating a democracies-led market. She believes that by aligning efforts with the US and Europe, Japan can effectively mitigate the risks associated with China’s control over rare earth resources. This important partnership is imperative in protecting the economic prosperity of Japan. It further enables Japanese firms to work with certainty, no longer subject to the peril of dependence on Chinese-sourced materials.
Katayama fears the drab but critically important role rare earths play in industries from defense to renewable energy. These elements are cornerstones for technology and renewable energy. She continued, highlighting that China’s monopolistic stranglehold of these resources makes the market wildly unpredictable. This ongoing instability may create a chilling effect on Japanese industries. She establishes new coalitions with other democratic countries. Her ultimate aim is a robust supply chain that meets Japan’s socioeconomic demands while acting as a growth engine.
The finance minister’s statements reflect growing apprehension among policymakers regarding China’s potential to leverage its rare earth resources for political and economic gain. The truth is… Katayama emphasized that Japan must take preemptive steps to ensure its continued competitiveness in the global marketplace.
The outlined partnership would house a coordination on sourcing rare earths. Beyond that, it will spur innovation and create alternative technologies to lessen our dependence on these strategic materials. By working together, Katayama believes that Japan, the US, and Europe can create a more secure and sustainable framework for rare earth supply.