China Shoulders Its Favorite Trade War Weapon in Feud With Japan

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Why This Matters

China has threatened to restrict rare earth exports to Japan, targeting a persistent vulnerability in the Japanese manufacturing sector, which has been trying to reduce its reliance on China for over a decade.

Market Impact

Market impact analysis based on bearish sentiment with 80% confidence.

Sentiment
Bearish
AI Confidence
80%
Time Horizon
Short Term

Article Context

Note: This is a brief excerpt for context. Click below to read the full article on the original source.

China’s warning to Japan that it could choke off supplies of rare earths, its favorite weapon in trade conflicts, targets a persistent vulnerability among Japanese manufacturers after more than a decade of Tokyo trying to reduce reliance on its rival.

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Original article published by Bloomberg on January 7, 2026.
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