Key Points:
- Japanese Trade Minister Ryosei Akazawa and Chinese Commerce Minister Wang Wentao held their first talks since diplomatic relations soured last year.
- Tokyo raised concerns over China’s export limits on rare earths and critical minerals, warning that these policies disrupt global technology supply chains.
- Vice Foreign Minister Iwao Horii urged China to protect Japanese citizens after a Shanghai knife attack injured 3 people.
- The brief meeting in Suzhou lays the groundwork for a potential summit between Prime Minister Sanae Takaichi and President Xi Jinping later this year.
Japanese and Chinese trade officials made their first direct contact in months during a regional summit in eastern China. Japanese Economy, Trade and Industry Minister Ryosei Akazawa held a brief conversation with Chinese Commerce Minister Wang Wentao on the sidelines of the Asia-Pacific Economic Cooperation (APEC) forum in Suzhou. This interaction marks a notable shift in communication, as official ministerial channels had remained quiet since a major diplomatic dispute broke out in late 2025.
The political chill between the two countries started last November. During a parliament session, Japanese Prime Minister Sanae Takaichi suggested that Tokyo could deploy its defense forces if a military conflict arose over Taiwan. Beijing reacted with anger to the comments, as China claims the self-ruled island as its own territory. Following the remarks, communication between Tokyo and Beijing slowed to a crawl, hitting businesses that rely heavily on cross-border trade.
During the two-day APEC meeting, Akazawa used the opportunity to address growing anxieties in the technology sector. He urged China to roll back its heavy export restrictions on rare earths and other essential minerals. Currently, China controls roughly 70% of rare earth mining and up to 90% of magnet refining worldwide. Akazawa argued that these strict export controls do not align with international trade rules and could severely disrupt global supply chains for electronics, electric vehicles, and defense gear.
The contact between the two ministers was informal but direct. Akazawa reportedly walked over to Wang while the Chinese minister sat alone at a dining table during a Friday evening banquet. Shortly after, Japanese Senior Vice Foreign Minister Iwao Horii also spoke with Wang. Horii talked with the commerce minister during a river cruise after the dinner, ensuring that multiple Japanese officials voiced their current policy positions to Beijing.
Beyond trade disputes, the Japanese delegation raised urgent safety concerns. Horii asked Wang to ensure the safety of Japanese citizens living and working in China. This request followed a knife attack on Tuesday at a Japanese restaurant in Shanghai, which left 3 people injured, including 2 Japanese men and 1 Chinese woman. Chinese authorities have labeled the incident as an isolated event involving a suspect with a mental health condition, but Japanese businesses remain on high alert.
Following Prime Minister Takaichi’s defense comments last year, Beijing applied pressure on Tokyo through various economic channels. In addition to tightening export controls on dual-use materials, Chinese authorities issued travel advisories for Japan and canceled several high-profile Japanese cultural events. These trade blocks directly impact companies in both nations, highlighting how easily political tension can spill over into the commercial tech industry.
Despite these deep disagreements, Tokyo is actively trying to keep the lines of communication open. Japanese officials are working behind the scenes to organize an official meeting between Prime Minister Takaichi and Chinese President Xi Jinping. They hope to schedule this high-level meeting at the next APEC leaders’ summit, to be held in Shenzhen in November 2026. Japan’s government maintains that its long-term goal of building stable and mutually beneficial trade ties with China has not changed.
The two-day Suzhou gathering highlighted the delicate nature of regional diplomacy. While Taiwan also sent its trade representative, Yang Jen-ni, to represent one of the 21 APEC member economies, Japanese officials did not hold talks with her to avoid further upsetting Beijing. Last week, Japan’s gender equality minister, Hitoshi Kikawada, visited Shanghai for a separate APEC event but did not meet with any Chinese officials. This cautious approach shows that both countries are taking small, deliberate steps to manage their economic differences without triggering deeper conflicts.
