Japanese Finance Minister Katsunobu Kato stressed the need for a unified response from the Group of Seven nations amid concerns over recent Chinese controls on rare earth exports.
According to a Bloomberg report, Kato said in an interview with reporters in Washington on Wednesday that “Japan is deeply concerned about these measures,” referring to China’s latest trade actions. He added: “I have called on the G-7 countries to unite and respond.”
Kato made his remarks after the G-7 meeting, which was held alongside the annual meetings of the International Monetary Fund and the World Bank. During the discussions, finance chiefs from leading developed countries considered a possible coordinated response to China’s new restrictions on rare earth exports and the ongoing tensions between Beijing and Washington.
What do the new Chinese rules say?
Newly announced Chinese regulations last week mandate that foreign companies obtain approval from the Chinese government before exporting items that contain even minimal amounts of certain rare earth elements originating in China. China dominates as the producer of more than 90% of the world’s processed rare earths and magnets, including key materials used in everything from fighter jets to electric vehicles.
The US and China are exchanging barbs
Meanwhile, on Thursday, Chinese state media issued a seven-point response to US demands that Beijing lift controls on rare earth exports, as the two countries continue to exchange accusations and blame each other for escalating tensions, Reuters reported.
U.S. Trade Representative Jamieson Greer on Wednesday described China’s new restrictions on rare earths as a “global supply chain power grab” and suggested Beijing could avoid President Donald Trump’s threat to reinstate triple-digit tariffs on Chinese imports by dropping the measures, which are set to begin on Nov. 8.
Beijing insists it notified Washington of the new licensing rules in advance and says the restrictions are in line with policies already in place in other major economies.
The US and China have been locked in a heated exchange since a September phone call between Trump and Chinese President Xi Jinping, with each accusing the other of raising tensions ahead of a planned meeting between the two leaders.
(With input from agencies)
