08/01/2026

BIZ & FINANCE THURSDAY | JAN 8, 2026

16

Japan urges China to drop new export controls

TOKYO: Japan has urged China to revoke tougher new export controls on products with potential military uses, possibly including vital rare earth minerals, in a further escalation of Beijing and Tokyo’s diplomatic tussle. The Chinese Commerce Ministry said on Tuesday that authorities have “hereby decided to strengthen export controls on dual-use items to Japan”, effective immediately. It comes as China ramps up pressure on Tokyo after Japanese Prime Minister Sanae Takaichi suggested in November that Japan may react militarily in any attack on Taiwan. Beijing claims the self-ruled island as part of its own territory and has not ruled out seizing it by force. China has also been highly critical of Japan’s military build-up. While the Chinese statement did not mention specific items, it has fuelled worries in Japan that Beijing may choke supplies of rare earth minerals, some of which are included in China’s list of dual-use goods. China by far is the world’s biggest supplier of rare earths, crucial for a range of tech products from smartphones to fighter jets. Hours after the Chinese announcement, Masaaki Kanai, secretary-general of the Asian and Oceanian Affairs Bureau of the Japanese Foreign Ministry “strongly protested and demanded the withdrawal of these measures”. He issued the protest to Shi Yong, the

Indonesia touts ‘victory’ in achieving rice self-sufficiency JAKARTA: President Prabowo Subianto said yesterday that Indonesia’s rice production met all domestic demand, hailing a landmark achievement for food security – one of his key campaign promises. In a speech to farmers in Karawang, east of the capital Jakarta, Prabowo celebrated an “important victory” in achieving rice self-sufficiency within just over a year since he entered office in October 2024. “No nation is truly free if food is not available to its people. A nation cannot be independent if its food supply depends on other countries,” he said. Indonesia last achieved rice self-sufficiency in 2008, and before that in the mid-1980s. Rice is a staple food in the Southeast Asian nation of 286 million people. According to the National Food Agency, a government body aimed at advancing food security, Indonesia produced 34.71 million tonnes of rice in 2025, exceeding annual consumption needs of 31.19 million tonnes. “Today is a happy day for me,” said Prabowo, who at the start of his administration set a four-year target for rice self-sufficiency. It was achieved years ahead of schedule, with the government citing increased subsidies for farmers and streamlined regulations. “If many critics sneer and say we can’t achieve food self-sufficiency, today we prove that we are food self-sufficient,” Prabowo said. According to Statistics Indonesia, Southeast Asia’s largest economy used to import rice from major exporters Vietnam, Thailand and India. But according to the government, Indonesia did not import any rice at all in 2025. On the campaign trail, Prabowo put food security and agricultural self-sufficiency at the forefront. After assuming the presidency he launched a free meal initiative aimed at tackling child malnutrition, which he said provided nutritious food to 55 million people. But critics have argued that Prabowo’s flagship programme took away financial resources from other important initiatives, and pointed to more than 10,000 cases of food poisoning linked to the free meal scheme. – AFP supply-chain disruption but signalling potential for broader damage in future unless Tokyo takes conciliatory action,” Teneo said. Takahide Kiuchi, executive economist at Nomura Research Institute, said the impact on the Japanese economy would be “extremely severe” if China includes rare earths in export controls. He estimated that a three-month ban could cost Japan ¥660 billion (RM17 billion) and reduce the nation’s gross domestic product by 0.11%. “Particularly for rare earths like dysprosium and terbium, which are auxiliary materials for neodymium magnets used in EV (electric vehicle) motors, Japan is said to depend almost 100% on China,” he added. Japan’s top government spokesman Minoru Kihara declined yesterday to comment on the impact on Japan’s industries. – AFP

That is in spite of Tokyo’s efforts to diversify supplies following an earlier 2010 row, which saw Beijing temporarily cut off exports of the materials to its neighbour. Global risk consultancy Teneo said the ambiguous wording of the Chinese statement may have been intended to press Takaichi to take a more conciliatory stance towards China. “The brief statement by China’s commerce ministry is vague, and the impact of the new measures could range from almost entirely symbolic to highly disruptive,” it said. “By triggering concern in Japan about the ongoing availability of critical Chinese industrial inputs, the announcement puts immediate pressure on Takaichi to offer concessions.” “A plausible scenario is that the commerce ministry initially rejects a small handful of license applications, creating only minor

Chinese embassy’s deputy chief of mission, the Japanese Foreign Ministry said in a statement late on Tuesday. Kanai said these measures “deviate significantly from international practice, is absolutely unacceptable and deeply regrettable”. More than 70% of Japan’s imports of rare earths come from China, according to the Japan Organisation for Metals and Energy. o ‘Unacceptable’ measures ‘deviate significantly from international practice,’ says Foreign Ministry official

The Guinea-flagged oil tanker MT Bandra is partially seen alongside another vessel at El Palito terminal in Venezuela. – REUTERSPIC Oil extends losses as Trump flags Venezuela shipments HONG KONG: Oil extended losses yesterday after President Donald Trump said Venezuela would turn over millions of barrels to the United States, while equities were mixed after a record-breaking start to the year. Venezuela and the United States.” Analysts said the shipments lowered the risk that Caracas would have to cut output owing to its limited storage capacity, easing supply concerns, but added that the outlook for the commodity was lower prices. However, Hong Kong sank with Singapore, Taipei and Mumbai. Tokyo shed more than 1% after China imposed tougher export controls on products sent to Japan with potential military uses. Frankfurt hit a record high above 25,000 points at the open. London was down and Paris rose.

Crude has seen wild swings since the US president ordered the toppling on Saturday of Nicolas Maduro, his counterpart in Caracas, and said Washington would run the country while demanding “total access” to its key resource. But both main contracts sank more than 1% yesterday – having lost 1.7%-2% on Tuesday – after Trump announced the latest development. “The Interim Authorities in Venezuela will be turning over between 30 and 50 MILLION Barrels of High Quality, Sanctioned Oil, to the United States of America,” he wrote on his Truth Social platform. “This oil will be sold at its market price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of

That comes as the crude market remains well stocked after OPEC+ agreed to boost output. Venezuela sits on about a fifth of the world’s oil reserves, but observers pointed out that a quick ramp-up of output would be hamstrung by several issues including its creaking infrastructure, low prices and political uncertainty. Equity markets fluctuated after a strong start to the year that has already seen Seoul following London and New York in hitting record highs thanks to the relentless rush into all things artificial intelligence. South Korea’s Kospi index continued its run-up Wednesday, while Shanghai, Sydney, Wellington, Bangkok, Manila and Jakarta also rose.

Still, despite rising geopolitical tensions, analysts remain upbeat about the outlook for equities this year. “Participants remained squarely focused on what remains a robust bull case of resilient economic growth and robust earnings growth, largely in keeping with that which powered the market higher last year,“ wrote Michael Brown at Pepperstone. He pointed to“expectations for considerably looser monetary and fiscal backdrops through the next twelve months”. “My view remains that the ‘path of least resistance’continues to lead to the upside, and that any dips – were they to occur – continue to represent buying opportunities.” – AFP