Author: DPA/chk
Source: [Original article not available - Newspaper text provided]
Publication Date: October 28, 2025
Summary Reading Time: 3 minutes

Executive Summary

The USA and Japan have signed a strategic agreement for cooperation on rare earths to reduce their dependence on China's quasi-monopoly. Japan is increasing its defense spending to 2% of GDP and strengthening military procurement from the USA. The alliance positions itself as a direct counterweight to China's growing power ambitions in the region.

Core Issue & Context

At a summit meeting in Tokyo, US President Trump and Japan's new head of government Sanae Takaichi expanded their security alliance. The focus is on diversifying critical supply chains and reducing strategic dependencies on China, particularly for rare earths.

Key Facts & Figures

• Rare Earth Cooperation: New agreement for joint extraction, processing and supply • Defense Spending: Japan raising budget to 2% of GDP by March 2026 (2 years earlier than planned) • Military Procurement: Japan has already ordered "very large quantities" of new US military equipment • APEC Summit: 21 Pacific rim states, Trump meets Xi Jinping in South Korea • China's Dominance: Quasi-monopoly on rare earths, export controls as leverage in trade dispute

Stakeholders & Those Affected

Directly affected: • USA and Japan (strategic partnership) • China (challenge to market dominance) • Technology companies (smartphones, electric cars, wind power) • Defense industry

Regional actors: • APEC states (21 Pacific rim countries) • North Korea (security threat) • NATO (precedent for defense spending)

Opportunities & Risks

Opportunities: • Supply Chain Resilience: Reduced dependence on Chinese raw materials • Technological Sovereignty: Securing critical materials for high technology • Economic Cooperation: New trade partnerships in the Pacific region

Risks: • Escalation of trade tensions between USA and China • Retaliation: China's possible response to circumventing their monopoly • Costs: Higher expenses for alternative procurement channels

Action Relevance

Time-critical: • Diversification of raw material sources before possible Chinese sanctions • Monitoring of Trump-Xi talks in South Korea for further developments

Strategic: • Assessment of own supply chain dependencies on China • Review of cooperation opportunities with USA-Japan alliance • Preparation for possible market turbulence in critical raw materials

Fact-checking

⚠️ To be verified: Exact quantities of Japanese military procurement and concrete timeline of GDP increase

Bibliography

Primary source:

Trump in Tokyo – Counterweight to China: Japan and USA Strengthen Alliance - [Provided newspaper text]

Verification status: ⚠️ Additional sources required for complete fact-checking
Note: Article dated October 28, 2025 - Future date requires verification