In a second interview on the topic, this time with Nikkei, Japanese Finance Minister Satsuki Katayama clearly expressed her anger. In doing so, she underscored China’s near total monopoly on rare earths. The interview, published on January 10, 2026, at 03:45 JST, took place in Tokyo and addressed significant economic and trade issues facing Japan.
In the interview, titled “Exclusive: Katayama envisions creating market of democracies with US, Europe,” Katayama outlined her vision of collaborating with the United States and Europe to establish a robust market of democracies. She emphasized the need for Japan to reduce its dependency on China for critical rare earth elements, which are essential for various technologies and industries.
Katayama underscored that the recent tightening of Chinese control over the global supply of rare earths represents a major obstacle for Japanese companies. She explained that this regulatory control creates a cloud of uncertainty, creating challenges for firms to forecast their business operations and investment needs. The Finance Minister underlined the importance of diversifying supply chains as an immediate imperative. This action seeks to diminish both private and commercial risks from China’s possible use of rare earths as an economic weapon.
The minister wants to establish closer ties with the United States and European countries to deepen the links. …together, they will establish a secure and resilient U.S. supply chain for rare earths. In doing so, she argues, Japan would not only strengthen its own economic sovereignty but increase its industries’ resilience to foreign coercive power. Katayama’s was a remarkably forward-thinking approach, rooted in a keen realization of the geopolitical ramifications associated with rare earths. These resources have in turn become key components of our global economy.
In her conversation with Nikkei, Katayama underscored that cooperation among democratic nations is crucial to counteract any unilateral actions that could destabilize supply lines. The Finance Minister’s decision is a sharp departure from Japan’s longstanding, protectionist trade policy. Its avowed purpose is to deepen partnerships and sharpen national security by improving economic competitiveness.
Atsushi Manami Yamada took an extraordinary photograph of Katayama during the conversation. This picture best represents the fierce, warrior spirit Katayama possesses as she takes on these pressing issues. With her leadership, Japan is poised to navigate the complexities of international trade while ensuring that its economic interests remain safeguarded against potential threats.