Core Viewpoint - Japan is positioning itself to fill the strategic gap left by China in the context of US-China trade tensions, particularly in the areas of rare earths and semiconductors, potentially as a bargaining chip for tariff concessions from the US [1][3][10] Group 1: Japan's Strategic Moves - Japanese officials have expressed confidence in their ability to leverage their rare earth resources and semiconductor industry to reduce US dependence on China, aiming for adjustments in US tariffs [3][5] - Japan has previously established a trusted partner mechanism with the US in 2021 to address risks associated with reliance on a single source, specifically targeting China's dominance [5][6] - Japan's domestic rare earth self-sufficiency is currently below 15%, yet the government plans to invest 1.5 trillion yen (approximately 720 million RMB) in related mining and technology [6][10] Group 2: Challenges and Realities - China's dominance in the rare earth sector is significant, with 87% of global refining capacity and over 70% of exports, making it difficult for Japan to effectively replace this supply [6][10] - Despite Japan's ambitions, it remains heavily reliant on China for rare earth imports, with over 60% of its supply coming from China, raising questions about the feasibility of Japan's plans [10][12] - Historical context shows that Japan has faced significant challenges when attempting to reduce reliance on Chinese resources, as seen during the 2010 rare earth export restrictions that severely impacted Japan's electronics manufacturing sector [10][12]