Germany and Japan deepen economic-security cooperation in Tokyo

German Chancellor Friedrich Merz has met Japanese Prime Minister Sanae Takaichi in Tokyo, with both sides using the visit to set out a closer economic-security partnership. It was Merz's first visit to Japan as chancellor, and the two leaders issued joint statements on economic security and future technologies. Their message focused on reducing dependence on vulnerable supply chains and strengthening cooperation between two of the world's largest economies.

The joint statement said both leaders expressed deep concern about the growing use of economic coercion, including arbitrary export restrictions and retaliatory measures affecting critical raw materials. They also rejected non-market-based practices that create overcapacity and market distortions, saying these can undermine economic security and resilience. The two governments said they want to step up monitoring and assessment of supply chains so that economic dependencies cannot be used as a tool of pressure.

The talks also covered closer cooperation in sectors seen as strategically important, including critical raw materials, semiconductors, batteries, electric cars, industrial artificial intelligence, robotics, pharmaceuticals and wind power. On critical raw materials, Merz and Takaichi welcomed the signing of a joint declaration of intent. They also announced plans to broaden the supply base and improve the substitutability of rare earths in the automotive industries of both countries.

The meeting comes at a time when major economies are increasingly treating supply chains as a matter of national security rather than only trade policy. Japan has faced supply bottlenecks for rare earths after China restricted exports of several important raw materials, making diversification a practical concern for its industrial base. The emphasis on economic coercion also reflects wider tensions over how states use trade, export controls and industrial policy to influence partners and rivals.

The two leaders also agreed to establish a high-level dialogue on artificial intelligence and to work more closely on protection against cyberattacks. That part of the agenda reflects growing concern in Japan about AI-driven cybercrime, which the statement said is rising sharply in the country. The cooperation is intended to link industrial policy with security policy, especially in areas where technology, data and supply chains overlap.

The joint statement did not name China or the United States, but the language appeared to point to concerns about both countries' use of economic policy. The broader significance is that Germany and Japan are both trying to reduce exposure to pressure in critical sectors while keeping trade and investment open. What remains unclear is how quickly the new declarations will translate into concrete projects, and which sectors will see the first practical steps.

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