Finance Minister Katsunobu Kato voiced serious concern over China¡¯s latest export controls on rare earths, stressing the importance of coordinated action from Group of Seven nations.

¡°Japan is deeply concerned about these measures,¡± Kato told reporters in Washington on Wednesday, referring to China¡¯s latest trade measures. ¡°I called for G7 nations to unite and respond,¡± Kato said.

Kato spoke following a G7 meeting held on the sidelines of the International Monetary Fund and World Bank annual meetings. Finance leaders from major developed economies discussed a potential joint response to China¡¯s new export controls on rare earths and the current state of tensions between Beijing and Washington.

China¡¯s new rules, announced last week, require overseas firms to obtain Chinese government approval before exporting products containing even trace amounts of certain rare earths that originated in China. The country produces more than 90% of the world¡¯s processed rare earths and magnets, critical components in technologies ranging from fighter jets to electric vehicles.

Kato refrained from commenting on any specific countermeasures against China discussed among the G7 countries.

U.S. President Donald Trump has threatened significant tariffs on Chinese goods in response, while in the latest development, Treasury Secretary Scott Bessent mentioned that the tariff truce could be extended if China delays implementing its rare earth restrictions. Since earlier this year, the U.S. and China have agreed to 90-day truces on import duties, with the next deadline set for November.

¡°If our actions were to trigger a cycle of retaliation, that could have adverse effects on the global economy and markets,¡± Kato added, striking a tone of caution while criticizing China¡¯s latest moves.

The Japanese finance minister also emphasized the need to closely monitor risks to financial markets and said authorities will remain vigilant against excessive fluctuations or disorderly movements in exchange rates.

Separately Kato said he had a bilateral meeting with his U.S. counterpart Bessent, reaffirming the importance of trade and the countries¡¯ understanding on currencies.

Last month the two officials issued a joint statement focused on foreign exchange policy, confirming their commitment not to manipulate currencies for competitive advantage, while maintaining room for intervention in cases of excessive volatility or disorderly market moves.