China is seemingly applying pressure on Japan and the United States over the control of rare earth elements, vital resources for numerous technologies. This development, featured prominently in Japanese news, highlights China's significant influence as the leading global supplier. The timing and ramifications of China's actions in this sphere are yet to be clear. Analysts predict potential economic, technological, and diplomatic impacts that could shape the future of the global supply chain.
Japan, as a technology-rich country, is heavily reliant on rare earth elements that are crucial for its industries. Any potential disruption or manipulations in the rare earth market by China could pose significant risks for Japan's economy, especially its tech sector, raising concerns among its society and political class.
Like Japan, the US is also highly dependent on rare earth elements, much of which is sourced from China. While there have been efforts in the past to diversify the supply chain, the control China maintains over these resources remains a considerable challenge. The US-EU, for instance, have similar concerns and are taking steps to secure their own sources of these critical elements.