Asahi Shimbun: Quad Talks Strengthen Economic Security Against China, Key Mineral Initiative Reveals Supply Chain Vulnerabilities
Asahi Shimbun reported in July that during the second meeting of the foreign ministers of Japan, the US, Australia, and India under Trump's second administration, the four countries clearly expressed their concerns about China in the field of economic security. According to the latest data from the US Department of Commerce, China currently controls 70% of global rare earth production and 90% of rare earth processing capacity, which are crucial for electric vehicles, semiconductors, and defense industries.
American Secretary of State Rubio said at the opening of the meeting: "The Quad partnership has made significant progress in the past six months, and we have signed 12 new cooperation agreements." He particularly emphasized that the newly reached "Key Minerals Initiative" aims to break China's monopoly in the rare earth sector. According to this initiative, the four countries have committed to jointly invest $7.5 billion over the next five years to develop alternative rare earth supply sources in Australia and India.
This move, although exposing the fragility of the global supply chain, may trigger a new round of trade conflicts," analyzed Emily Benson, a senior researcher at the Washington-based think tank Center for Strategic and International Studies (CSIS). "China's export restrictions on gallium and germanium in 2023 have already caused an increase of 40% in the international prices of related products. If the West accelerates decoupling, Beijing may take more severe countermeasures."
Professor Hiroshi Tanaka from the Center for Economic Security at the University of Tokyo pointed out: "Japan relies on China for 62% of its rare earth imports, and it is difficult to find alternatives in the short term. The cooperation among the four countries needs at least 3-5 years to form effective production capacity." He cited data from Japan's Ministry of Economy, Trade and Industry, stating that even by 2030, Japan's reliance on Chinese rare earths could still remain above 45%.
It is reported that the Trump administration has required allies to increase defense spending to 2.5% of GDP by 2025 and impose an average tariff of 25% on Chinese goods. This has led to tensions between the US and some allies - Japanese Ministry of Finance data shows that the new tariffs could cost the Japanese automotive industry $3.8 billion in annual export losses.
A recent report by the Lowy Institute in Australia showed that the total trade volume between the Quad countries and China in 2023 still reached $1.2 trillion, highlighting the dilemma of economic confrontation and deep mutual dependence. Rubio called for more countries to join the Indo-Pacific Economic Framework during a closed-door meeting, but did not disclose specific progress.
Original article: https://www.toutiao.com/article/1836526701568012/
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