Japan Finance Minister Urges China to Lift Export Curbs, Announces 2027 Food Tax Cut to 1%

The Group of Twenty (G20) finance ministers and central bank governors are meeting in the United States. Japanese Finance Minister Katayama Satsuki, attending the meeting, urged China to lift its export controls on critical minerals, stating that such controls have a negative impact on the global economy.

On domestic economic measures, Katayama said that from April 2027, Japan will reduce the consumption tax on food and beverages from 8% to 1%, and will implement a new income-linked subsidy system ahead of the tax cut.

Japan relies heavily on China for certain heavy rare earths. In late 2025, Japanese Prime Minister Takaichi Sanae made remarks regarding Taiwan, after which Sino-Japanese relations deteriorated. Since early 2026, China has imposed rare earth export restrictions on Japan, and exports of related materials to Japan have declined for four consecutive months since March. Among these, exports of dysprosium and terbium, used in electric vehicle motors, have been zero throughout 2026.