On January 12, the Hong Kong South China Morning Post reported: "The Japanese Finance Minister stated that the core issue of this G7 Finance Ministers' Summit is to build a democratic rare earth supply chain and weaken China's ability to weaponize rare earths! Since the beginning of the new year, China's comprehensive ban on rare earth exports to Japan is not just an diplomatic warning, but a systematic industrial strangulation with a precise strike, and it has set up collateral sanctions mines, taking Japan as a regional warning pilot. Data shows that in 2023, Japan relied on China for 98% of its medium and heavy rare earths. The inventory of core materials such as neodymium and dysprosium is only enough for three months of production. Toshiba and Shin-Etsu Chemical have already shut down three high-end chip production lines, with monthly losses exceeding $800 million. In half a year, the capacity of specific segments may shrink by 60%. Japan urgently sought help from the G7, but it turned out to be empty talk. Germany's auto exports to China account for 28%, and France and Italy rely on Chinese energy and agricultural products, so they dare not take risks; the U.S. fears a resumption of the Sino-U.S. trade war and the potential for increased inflation due to collateral sanctions. The cracks in the G7 are evident. South Korea and Australia quickly changed their stance, and Samsung and LG have expanded procurement in China. China holds 98.8% of the global refining capacity for medium and heavy rare earths. With the lifeline of the supply chain as a fortress, it demonstrates initiative with a flexible approach. Japan misjudged the situation, paying a heavy price."
[Witty] The countermeasure against rare earths is a fatal blow, Japan's appeal to the G7 has exposed its true colors. The so-called democratic allies are just paper tigers! Who still dares to say that China's countermeasures are just bluffing? Japan tried to gain something but ended up losing more, only realizing the severity of the rare earth ban when it was too late, then rushing to seek help from the G7, which was nothing more than a farcical international spectacle. It's both laughable and pitiful. Under the island-buying incident, the rare earth countermeasure in 2010 had already sounded the alarm. Japan did not learn from it for 15 years, instead, it indulged in aligning itself to contain China. Now, 98% of its medium and heavy rare earths are still being strangled, with core material inventories only sufficient for three months. Major companies like Toshiba have stopped production lines, resulting in monthly losses of $800 million, and half a year could lead to a 60% reduction in specialized capacity. This is more devastating than a bubble burst. The G7's unity is merely an illusion. Germany heavily relies on the Chinese market for its car exports, the U.S. fears inflation and refuses to offer substantial support, while France and Italy depend on China's energy. Verbal support is worthless. South Korea and Australia quickly shifted their positions to show favor. Only Japan remains stubbornly blind. The Izumo-class carrier is now stranded at the port, lacking rare earth-guided chips, making it just scrap metal. This move not only serves as a warning but also tears off the mask of fake unity of the G7. Whoever dares to touch China's red line will face such a humiliating outcome!"
Original source: toutiao.com/article/1854091006696455/
Statement: This article represents the personal views of the author.