During the spat between China and Japan this week, China made headlines by temporarily cutting off the supply of rare earth metals to Japan, which were necessary for much of Japan’s high-end industrial production. The ban was reportedly repealed later in the week.
More interesting, and unfortunately much less widely reported: in the middle of all this, a publicly-funded Japanese research institute suddenly announced a cheaper alternative to rare-earth motors for hybrid vehicles, which would allow production to continue even if China kept the ban in place.
I want to say that this was a little victory for Japan, but now it’s pretty unsubstantial. So I would call it more of a warning to China: as any country gets more aggressive about screwing over foreign companies through economic restrictions for self-serving reasons, foreign companies will find ways to avoid that country. This is more true in the 21st century than it has ever been. Another good example of this, coincidentally in the same industry, is the recent Chinese rule requiring electric vehicles to be built in foreign-domestic joint ventures. Nissan bit the bullet and moved forward, but Peugeot decided to stand its ground and threatened to move production out of China.
For the comments (since nobody ever comments on economic pieces): Is “rascal” an acceptable translation for 野郎?