Japan is ramping up efforts to reach out to its Group of Seven peers and beyond amid mounting concerns over China¡¯s grip on rare earths as the dispute with Beijing escalates.

Finance Minister Satsuki Katayama said she will meet with counterparts of other industrialized democracies to discuss critical minerals during a trip to the U.S. starting Sunday, while Defense Minister Shinjiro Koizumi is also set to hold talks with his U.S. counterpart on Thursday. At home, Prime Minister Sanae Takaichi will be holding a summit with South Korea¡¯s Lee Jae Myung next week to reaffirm the alliance between the two key U.S. allies.

¡°The fundamental consensus among the G7 nations is that it is unacceptable for countries to secure monopolies through non-market means,¡± Katayama told reporters on Friday, referring to China¡¯s past actions regarding critical minerals. ¡°This poses a crisis for the global economy and is extremely problematic for economic security.¡±

Tensions have continued to rise between Asia¡¯s two biggest economies, dragging out a dispute that began in early November, when Takaichi made comments that suggested Japan could deploy its military if China uses force to try and seize Taiwan. Following this week¡¯s actions from China, from new export restrictions that may impact rare earths to an anti-dumping probe into a key chip-making material, Japan appears to be trying to reach out to its allies in a bid to strengthen its footing.

Earlier Friday, Chief Cabinet Secretary Minoru Kihara called for smooth shipments of rare earths and food, following reports that Beijing is hindering trade on those goods. Kihara declined to comment on individual transactions by private companies, but he said Japan is monitoring developments closely and will act appropriately as needed.

¡°I believe international trade in rare earths should proceed smoothly, and I consider this to be extremely important,¡± Kihara said at a news conference. ¡°China¡¯s export control measures on rare earths and other materials have been ongoing for some time and are having a serious impact on the global supply chain.¡±

China has begun choking off exports of rare earths and rare-earth magnets to Japan, the Wall Street Journal reported earlier, citing two exporters in China. A Japanese company that imports rare earths from China hasn¡¯t been informed of any halt in export application procedures at least from Thursday to noon on Friday, according to a person familiar with the situation.

The impact of China¡¯s latest move is still unclear, but existing export controls have already lengthened the time required to procure rare-earth magnets, said Hiroshi Yamada, president of Tokyo-based Sanshin Kinzoku Kogyo, which manufactures and sells magnetic equipment. Neodymium magnets in particular have been affected, with procurement lead times growing to three to four...