"Japan and EU launch trade ‘alliance’ amid concerns over U.S. and China" 23 July 2025

[Unofficial description by Business & Human Rights Resource Centre]

The European Union and Japan have established a “Competitiveness Alliance” aimed at expanding bilateral trade, promoting business collaboration, and exploring strategies to diversify critical mineral supply chains.

The alliance is built on three core pillars: enhancing trade between the two economies, bolstering economic security, and advancing cooperation in innovation, particularly in green and digital transitions.

A key focus of the discussions was the development of more “reliable” supply chains, starting with critical raw materials like rare earths and batteries. The EU stands to benefit from Japan’s advanced rare-earth refining capabilities, while Japan could gain access to financing from the European Investment Bank and participate in joint procurement platforms, initiatives that could lower costs and strengthen their negotiating position amid China’s market dominance.