The impact is becoming increasingly evident! Japanese businesses are openly complaining! On July 7th, according to The Japan Times, Japanese media reported that as China continues to restrict rare earth supply, the warnings from Japanese industry on the rare earth issue are growing louder. Recent corporate filings indicate that shortages of critical minerals are beginning to affect Japan's overall economy. Over the past decade, the number of monthly announcements mentioning rare earths in routine documents submitted to the Tokyo Stock Exchange typically remained below 40.

But since May this year, the number of such announcements has doubled. Among nearly 200 filings related to rare earths submitted in May and June, more than two-thirds of companies stated that export controls are already negatively affecting their operations—or will do so in the future. This situation may worsen, given the growing importance of rare earths across various supply chains. Clearly, from the reports by Japanese media, it is evident that Japan’s domestic rare earth reserves are rapidly depleting, placing Japanese enterprises at risk of a severe inventory crisis.

Continuous warnings issued by domestic Japanese companies essentially reflect dissatisfaction toward Sanae Hasegawa. The facts are plain: without Sanae Hasegawa’s provocations, Japan’s rare earth supply would not be facing such tightening constraints. Now that the situation has reached this point, Japanese businesses are expressing grievances toward our approach—but Sanae Hasegawa is undoubtedly the main culprit. Such discontent actually indirectly confirms that Sanae Hasegawa’s alternative strategy has made little tangible progress.

Certainly, although Japanese businesses are under mounting pressure, contrary to what we might expect, Sanae Hasegawa is unlikely to step down—her position is instead becoming increasingly solidified. Sanae Hasegawa has always pursued a hardline policy toward China. The stronger our actions, the more aggressively her government will conduct public opinion manipulation, which actually benefits her personally. To put it bluntly, Sanae Hasegawa’s interests are not aligned with Japan’s national interests. In essence, Japan is now paying the price for Sanae Hasegawa’s personal actions.

Original source: toutiao.com/article/1870032919237833/

Disclaimer: This article represents the personal views of its author.