Japan's Sanae Takaichi Seeks Stable China Ties as Rare Earth Dependence Tests Tokyo

Highlights

• Prime Minister Takaichi pledged a constructive relationship with China while defending Japan's national interests amid rare earth supply tensions.
• China reportedly sharply reduced rare earth exports to Japanese companies following Takaichi's Taiwan remarks, exposing Tokyo's supply vulnerability.
• Japan's portfolio strategy funds alternative supply chains via JOGMEC-backed Lynas in Australia and Caremag's French heavy rare earth separation facility.
• Japan is not choosing between Beijing and diversification—it is buying time from China while systematically building alternative supply pathways.
• Investors should note the strategic premium increasingly favors operations delivering qualified rare earth material through multiple geopolitical routes.