A shortage of critical minerals is starting to affect the broader Japanese economy, adding a sense of urgency for Prime Minister Sanae Takaichi¡¯s government to find alternatives to exports that China has cut off, according to recent corporate filings.
China dominates the global market for rare earths ¡ª which are crucial in making items from electric cars to weapons ¡ª and it is using those supplies as a diplomatic cudgel. Since Takaichi enraged Beijing with comments about defending Taiwan in ?November, Beijing has choked off shipments of certain key minerals to Japan.
Recent surges in the Nikkei stock index to successive records and buoyant corporate sentiment in ?the Bank ?of Japan¡¯s tankan survey point to an economy on an upswing. But an unprecedented increase in corporate Japan¡¯s notices about critical ?minerals is flashing a warning signal for the quarters ahead.
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