Tokyo should consider creating a ¡°China-free¡± supply chain for defense equipment, Defense Minister Shinjiro Koizumi said Friday, following Beijing¡¯s ban on exports of dual-use items to Japan.

During a Lower House Budget Committee session, Koizumi spoke on the importance of reducing reliance on Chinese exports. He cited the example of U.S. drone companies that do not use parts manufactured in China, which he observed during a recent visit to Los Angeles.

¡°It¡¯s important to boost self-reliance by reducing dependence on specific countries,¡± he said.

Koizumi also protested Beijing¡¯s Jan. 6 ban on the export of dual-use items to Japan, including rare earths, which it imposed following remarks on Taiwan by Prime Minister Sanae Takaichi. The defense minister also called for China to withdraw a blacklist it announced Tuesday that targets 20 Japanese entities ¡°participating in enhancing Japan¡¯s military capabilities.¡±

Koizumi also unveiled a ¡°fast-track procurement¡± program to allow startups ¡ª not just established prime contractors ¡ª to enter the defense sector and speed up the introduction of equipment and technology.

Japan is stepping up efforts to diversify its supply chains, especially for rare earths. In one example, Sojitz is boosting imports of medium and heavy rare earths from Australia ¡ª increasing from two products to up to six ¡ª by mid-2027, according to local media.

However, Japan and other countries have been relying heavily on China for rare earth refining as the process is considered too environmentally costly to undertake domestically. China is forecast to retain about 78% of rare earth refining worldwide in 2040, according to the International Energy Agency.

Separating and refining rare earths are technically complex processes, and Japan lacks the infrastructure to safely manage radioactive by-products.

During Friday¡¯s Budget Committee session, Liberal Democratic Party policy chief Takayuki Kobayashi, who has also served as economic security minister, underscored the need for Japan to develop domestic rare earth resources.

¡°Given the need to safeguard Japan¡¯s economic independence, the time has come to undertake domestic refining despite those challenges,¡± he said.

Beijing¡¯s disinformation campaign against Japan was also among the topics discussed during the session. It was reported that one of China¡¯s representatives at the Munich Security Conference in February had described Japan as having the ¡°ambition to invade Taiwan.¡±

¡°At the Munich Conference, which I attended, the Chinese foreign minister made remarks about Japan that were not based on facts. In a subsequent session, I calmly rebutted those claims twice and set out the facts,¡± Foreign Minister Toshimitsu Motegi said.

He added that Takaichi plans to meet with U.S. President Donald Trump in March to coordinate the two countries¡¯ China policy ahead of the U.S. leader¡¯s scheduled visit to China.